Renminbi-denominated cross-border trade settlement has posted roaring growth in the decade since trial schemes were first launched in China’s major cities.
2019 marks the tenth anniversary of the launch of RMB cross-border trade settlement in China, following the release of the “Cross-border Trade Renminbi Settlement Trial Administrative Measures” (跨境贸易人民币结算试点管理办法》及《跨境贸易人民币结算试点管理办法实施细则) and accompanying by-laws by the Chinese central bank in July 2009.
The trials involved a total of five cities, including Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan, while trial trade regions encompassed Hong Kong, Macau and ASEAN nations. Bank of China and Bank of Communications were amongst the first participating banks.
RMB cross-border trade in the Shanghai region has since seen roaring growth, after posting an annual settlement figure of 8.15 billion yuan for the inaugural year of the trials, and 46.5 billion yuan in 2010.
Shanghai’s RMB cross-border trade settlement figure was 4.0432 trillion yuan for the first five months of 2019 for a YoY rise of 46.3%, according to the Chinese central bank’s official news outlet.
RMB cross-border trade settlement for Shanghai breached the 7 trillion yuan threshold in 2018, rising to a full year figure of 7.2893 trillion yuan.