The head of one of China’s big four state-owned banks says that internationalisation of the renminbi is proceeding apace, yet needs greater support from commercial lenders.
Liu Liange (刘连舸), president of the Bank of China, said that the role of the renminbi as a global payments currency is steadily increasing, while its role as a currency for investment, savings and as a unit of account Is gradually becoming apparent.
According to Liu commercial banks must be more active and support cross-border usage of the renminbi, as well as expedite the convenience of trade and investment.
Liu made the remarks at the “Renminbi Expediting the Convenience of Cross-border Trade and Investment Trade Theme Forum” (人民币助推跨境贸易与投资贸易便利化主题论坛) on 6 November.
The BOC head outlined three key areas where commercial banks need to provide related financial services to improve the ease of trade and investment:
- Optimise renminbi product portfolios, make bilateral trade interactions more convenient;
- Effectively employ the role of the renminbi in cross-border investment and financing, and enable more economic entities to enjoy the convenience of bi-directional financial market opening;
- Actively grasp new changes to the economic and financial environment, and present and resolve financial risk.