Bank of China released its Cross-border RMB Index (CRI) for the second quarter 2024. The results showed that the CRI stood at 376 in the period, an increase of 5 points on the previous quarter's 371.
In the second quarter, the CRI continued its steady rise. The following characteristics in cross-border RMB usage during the quarter were observed:
RMB were used in more cross-border scenarios, leading to an increased proportion of RMB in China's cross-border receipts and payments. According to data on banks' client-related receipts and payments for the second quarter, disclosed by the State Administration of Foreign Exchange, RMB receipts and payments accounted for 53 percent, up by 2 percentage points from the previous quarter.
Overseas institutions showed a more proactive intention to conduct cross-border investment and financing in RMB. By end-June, the outstanding balance of Panda bonds under the custody of the Shanghai Clearing House hit 234.5 billion yuan ($33.14 billion), a 20 percent increase from the end of the previous year. Moreover, the outstanding balance of RMB bonds in the offshore market exceeded 1.1 trillion yuan, a 16 percent increase from the end of the previous year.
Overseas institutions tended to hold RMB bonds in cross-border investments. As of end-June, the outstanding balance of onshore RMB bonds held by overseas institutions exceeded 4.3 trillion yuan.
The RMB client remittances in certain overseas regions maintained rapid year-on-year growth. According to SWIFT data on client remittances, cross-border RMB client remittances from RCEP trade zone members other than China increased by 24.7 percent year-on-year in the second quarter. Among them, cross-border RMB client remittances from ASEAN countries grew by 26.3 percent year-on-year, the total volume of RMB cross-border client remittances from major South American countries increased by 12 percent year-on-year, while RMB client remittances from the Middle East and Central Asia leaped by 48.9 percent and 69.5 percent year-on-year, respectively.
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