Whether or not the Chinese renminbi (RMB) can challenge the dollar’s dominance is a matter of ongoing debate, including the role of China’s future central bank digital currency DC/EP. On Tuesday, the second largest firm in the world, state-owned China Construction Bank (CCB) published the “2020 RMB Internationalization Report” in conjunction with the Asian Banker.
Based on a 2019 survey of 643 corporates and financial institutions, the CCB claims that 67% of overseas corporate respondents increased their use of the renminbi for cross border trade. The most common reason was to get better rates from suppliers (34%). Just 19% responded that the RMB motivation was because their trading partner required it, down from 47% in 2017.
Even if companies use the RMB for trade, that doesn’t mean it’s for every transaction. 76% of the overseas companies said more than 10% of their trade was in RMB.
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