The latest report from the China Banking Association showed on Monday that demand for the Chinese currency, the yuan or renminbi (RMB), increased in cross-border transactions in the first half of this year, according to the Xinhua news agency.
From January to June, RMB cross-border receipts and payments totaled 12.67 trillion yuan (about US $ 1.84 trillion), up 36.33% year on year.
Out of total transactions, cross-border RMB payments amounted to 6.36 trillion yuan, while cross-border receipts in RMB amounted to 6.31 trillion yuan.
At the end of June, the RMB’s share in global payments stood at 1.76%, making it the fifth most important payment currency in the world.
The RMB’s share in global payments fluctuated in early 2020 due to the impact of the COVID-19 outbreak, but it has recovered.
The internationalization of the RMB faces voting challenges related to the changing global landscape and the downward pressure on the economy.
Amid renewed weakness in the US dollar across the board and bullish Chinese manufacturing and services PMIs, the USD / CNY faces a double whammy and falls below 6.8500.
At press time, the cross is losing 0.25% to trade at 6.8471.