Bank of China released the Cross-border RMB Index (CRI) for the third quarter 2023. The results showed that the CRI for the third quarter 2023 is 357, up 5 points from the previous quarter and 4 points higher than the forecast value.
In the third quarter, the cross-border use of RMB continued to grow, presenting the following characteristics:
RMB transactions under cross-border trades remained active. Throughout the first three quarters, China’s foreign trade imports and exports demonstrated steady positive growth. The total import and export values were 9.72 trillion yuan ($1.36 trillion), 10.29 trillion yuan and 10.79 trillion yuan, respectively, showing continuous growth for two consecutive quarters. In September alone, the import and export value reached 3.74 trillion yuan, marking a new monthly high for the year. The scale of RMB settlement in goods trade maintained rapid growth, with a year-on-year growth rate 9.2 percentage points higher than the overall growth rate of cross-border RMB receipts and payments. This led to more cross-border RMB settlements, with the proportion of RMB in BOC’s agency transactions rising to 50.3 percent, up by 1.5 percentage points from the previous quarter.
The overseas usage of RMB expanded. The Bank of Thailand previously announced plans to promote the use of RMB and other Asian currencies in trade and investment. In Argentina, the first direct investment in RMB was completed. In Brazil, pulp exports to China achieved a closed-loop operation featuring RMB pricing, settlement, financing, and direct exchange of RMB to Brazilian Real for the first time.
In some overseas regions, the RMB client remittances maintained rapid growth. From a regional perspective, the total RMB cross-border client remittances from major South American countries grew by 129.2 percent quarter-on-quarter in the third quarter, with remittances from Brazil growing threefold. The Middle East and Central Asia regions saw rapid growth in RMB client remittances, increasing by 45.4 percent and 44.2 percent, respectively, quarter-on-quarter. The total remittance volume from major North American countries grew by more than 30 percent, while European countries experienced a 9.1 percent quarter-on-quarter increase. African countries, however, saw a 6.4 percent quarter-on-quarter decrease. In related hot spot regions, RMB client remittances continued to grow rapidly. 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 saw increases of 13.2 percent, 10.8 percent, and 11.6 percent, respectively.
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