Chinese currency renminbi (RMB), or the yuan, has gained a bigger popularity overseas, especially in countries along the Belt and Road as the B&R construction advances smoothly.
According to the People’s Bank of China (PBOC), 3.71 trillion yuan worth of cross-border trade was settled in RMB in the first three quarters of 2018, and a growing number of countries and regions have accepted the settlement of cross-border transactions in RMB.
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What’s more, the international demand concerning RMB is increasing. This is obvious in the currency swap between China and foreign countries and selling of Panda bonds in B&R countries.
Since the beginning of 2018, a lot of Belt and Road countries have extended currency swap deals with China.
They included Albania, South Africa, Belarus, Pakistan, Kazakhstan, Malaysia, Argentina, England, Indonesia and Chile.
In addition, Nigeria inked a new currency swap deal with China. Up to now, China has launched bilateral currency swaps with over 30 countries and regions in total, most of which are B&R countries. Behind the large number of currency swap agreements is the rising demand for RMB in the B&R countries.
Finally, the Belt and Road project focuses on connectivity and cooperation between Eurasian countries on all fronts, infrastructure, trade, and joint investments aiming to a more efficient, green and sustainable transport through better logistic solutions.
