According to People’s Daily Online, starting from September 6, 2021, commercial banks such as Industrial and Commercial Bank of China and Bank Central Asia Indonesia, as Chartered Cross Currency Market Makers (ACCD), can handle the China-Indonesia Local Currency Settlement Cooperation Framework in accordance with relevant regulations. RMB/Indonesian rupiah related trading business.
With the steady development of my country’s import and export trade, various trading partners may also increase their holdings of RMB when conducting trade settlements with my country. Statistics show that currently 30 countries, including Russia, Iran, Turkey and Venezuela, have gradually turned to the use of RMB in trade settlement or investment. Among the 30 countries, 13 countries including Vietnam, Kazakhstan, South Korea, and Malaysia imported more than 520 billion yuan of various textiles from my country in 2020.
RMB gradually enters Indonesia
According to the Financial Times, China Industrial and Commercial Bank of China The bank and ICBC Indonesia successfully handled the first RMB and rupee remittance business for local corporate customers in Indonesia and a corporate customer in Wenzhou on September 6, and reached the first cross-border RMB to rupee standard in the Zhejiang regional market of the China Foreign Exchange Trading Center. Spot trading.
Data from the Chinese Embassy in Indonesia show that bilateral trade between China and Indonesia reached US$78.37 billion in 2020, and China’s direct investment in Indonesia was US$2 billion. China continues to be Indonesia’s largest trading partner and second largest source of investment. status. From January to May this year, the trade volume between the two countries reached US$43.63 billion, a year-on-year increase of 48.9%. In the first quarter of this year, China’s direct investment in Indonesia reached US$1.04 billion, more than half of last year’s investment.
According to data from the General Administration of Customs, in the first eight months of this year, ASEAN was my country’s largest trading partner. The total trade value between China and ASEAN was 3.59 trillion yuan, an increase of 22.8%, accounting for 10% of China’s total foreign trade value. 14.5%. Among them, exports to ASEAN were 1.98 trillion yuan, an increase of 21.3%; imports from ASEAN were 1.61 trillion yuan, an increase of 24.8%; the trade surplus with ASEAN was 366.02 billion yuan, an increase of 8%.
As the country with the largest population and largest economic aggregate in ASEAN, Indonesia naturally has an important share in this. Among the six major ASEAN countries, Indonesia’s economic aggregate has always been at the highest level. Indonesia is also the only country in ASEAN with an economic aggregate exceeding US$1 trillion, ranking 16th in the world. It is the only country in ASEAN that can be classified as a large economy in the world. And Indonesia’s population has exceeded 271 million, which has a very large market space.
In recent years, RMB has gradually entered Indonesia. According to Xinhua News Agency, about 10% of Indonesia’s international trade uses RMB, and Bank of China ranks first in Indonesia’s market share of RMB cross-border clearing volume.
Dozens of foreign trade settlements around the world use RMB
Last year, my country and Iran signed a 25-year cooperation agreement, stipulating that the oil trade between the two parties should be settled in RMB. After that, our country reached more agreements with the United Arab Emirates on the use of local currency settlement, and both parties used RMB for settlement in oil trade. my country’s use of RMB for settlement in trade with other countries not only helps reduce the risk of being sanctioned by the United States, but also helps the internationalization of RMB.
In addition to Iran and the United Arab Emirates, countries that currently use RMB to settle oil trade include Russia. The proportion of China-Russia trade settled in US dollars has dropped from 90% in 2015 to less than 30% currently. In the future, local currency settlement will be expanded. In fact, this is “de-dollarization.” In fact, as the status of the US dollar is “shaky”, more and more countries are joining the trend of “de-dollarization”. According to relevant media statistics, so far, at least 53 countries including Germany, the United Kingdom, Japan, Vietnam, Singapore, and Canada have begun to decentralize the U.S. dollar in different ways. The main methods include expanding local currency settlement, reducing the use of U.S. dollar assets, optimizing the structure of foreign exchange reserves, Increase gold reserves, etc.
It is worth mentioning that with the steady development of my country’s import and export trade, various trading partners may also increase their holdings of RMB when conducting trade settlements with my country. Statistics show that dozens of countries, including Russia, Iran, Turkey and Venezuela, have gradually turned to the use of RMB in trade settlement or investment.
Textile foreign trade companies can avoid exchange rate losses
For textile foreign trade people Generally speaking, the most direct and important benefit of using cross-border RMB to collect payments is that it can avoid exchange rate risks. In the current environment where RMB appreciation is generally predicted, risk hedging through cross-border RMB has become even more important. Another benefit of using cross-border RMB is that it can save exchange costs and trade financing costs, thereby reducing financial costs.
For example, when doing business with Indonesia, Thailand, Myanmar, Cambodia and other countries, if the quotation is quoted in US dollars, an exchange difference of 3.5% for a single transaction is indispensable, because the exchange rates announced by the central banks of these countries and the exchange rates announced by the customs There is a difference between the exchange rate and the private exchange rate. At this time, you can use cross-border RMB export declaration to avoid this loss.
Especially in 2020, the RMB exchange rateThe sharp appreciation has brought great losses to textile foreign trade, and reducing the risk of exchange rate fluctuations has become more important for the textile industry.
At the same time, RMB settlement can also reduce the possibility of imported inflation of raw materials. In order to save the economy, the United States printed a large amount of money, which indirectly caused the introduction of systemic inflation around the world. Just after the Spring Festival this year, due to systemic inflation and the partial recovery of the market, the growth momentum of various raw materials exceeded expectations. For textile foreign trade companies, reducing the use of U.S. dollars between countries actually reduces the possible impact on raw material prices caused by the United States’ “water release.” </p
