RMB's influence increasing under current intl monetary system

Chinese currency renminbi's influence is increasing under the current international monetary system, Economic Daily website reported on Monday.

Chinese oil and gas player CNOOC and French energy giant TotalEnergies have completed China's first renminbi-settled liquefied natural gas trade recently.

Brazil has announced a decision to accept trade settlements and investments in yuan, with an agreement reached between central banks in February, and the appointment of a yuan clearing bank.

Statistics show that China's cross-border RMB settlement volume exceeded 42 trillion yuan ($6.09 trillion) in 2022, a more than three-fold increase from 2017.

RMB is currently the fifth most active currency for international payments, the fifth international reserve currency, and the third-largest weighting in the IMF's Special Drawing Rights basket.

The functions of the RMB as an international currency such as cross-border payment, investment and financing, reserve and valuation have been strengthened in all respects.

RMB has initially acquired network effects for international use with the establishment of RMB clearing banks and local currency swap networks, the development of offshore RMB market, the opening of domestic financial markets and the continuous improvement of overseas layout of Chinese financial institutions over the past decade's development.

Meanwhile, RMB's investment and hedging functions have gradually increased with the recovery of the China's economic growth momentum and the further opening up of the Chinese financial market.

Furthermore the development of the international monetary system has become more diversified with the changes in international geopolitical and economic development environment.