Bank of China released the Cross-border RMB Index (CRI) for the fourth quarter 2023. The results showed that the CRI for the fourth quarter 2023 is 364, up 7 points from the previous quarter and 4 points higher than the forecast value.
In the fourth quarter, the cross-border use of renminbi steadily increased, reaching a new high of the quarter. Throughout the year, the following characteristics in cross-border RMB usage were observed:
The RMB usage in China's cross-border receipts and payments has increased. In 2023, the RMB exchange rate against the US dollar exhibited significant two-way volatility, with 91 trading days showing a price difference of more than 300 basis points between the highest and lowest points. The positive role of cross-border RMB settlement in mitigating exchange rate risks and facilitating trade and investment became more prominent.
Additionally, continuous policy optimization further improved the RMB cross-border usage. These factors combined to increase the share of RMB in cross-border transactions. In 2023, the proportion of BOC’s agency cross-border RMB transactions rose to 48.7 percent, up by 6.2 percentage points from 2022.
The overseas usage of RMB has expanded, forming an international network gradually. According to SWIFT client remittance data, in 2023, 161 countries and regions were engaged in cross-border RMB transactions.
Besides China’s Hong Kong Special Administrative Region, more regions have become regional RMB receipt and payment centers. Countries such as the United Kingdom, Germany, Luxembourg, Switzerland, South Africa, and Singapore saw RMB client remittances involving 77, 66, 36, 34, 28, and 49 countries and regions, respectively.
The total RMB client remittance volume in countries and regions outside of the Chinese mainland grew by 20.4 percent in 2023, with an annual growth of 6.9 percentage points higher than that in 2022.
In some overseas regions, the RMB client remittances continued to grow rapidly. In 2023, the total RMB cross-border client remittances from major South American countries increased by 251.5 percent year-on-year, with remittances from Brazil growing threefold.
The Middle East and Central Asia regions also saw rapid growth in RMB client remittances, with increases of 99.5 percent and 135.3 percent, respectively. African countries' RMB client remittances grew by 7.1 percent.
In North America, RMB client remittances grew by 0.1 percent, while European countries saw a 1.8 percent decline.
In key hot spot regions, RMB client remittances maintained rapid growth, with ASEAN (Association of Southeast Asian Nations) member states, the RCEP (Regional Comprehensive Economic Partnership) free trade zone, and countries involved in the Belt and Road Initiative experiencing increases of 22.7 percent, 29.9 percent, and 21.1 percent, respectively, compared to 2022.
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