View source for Finance:Internationalization of the renminbi

{{Short description|Economic process in China}}

{{chinese|s=人民币国际化|t=人民幣國際化|p=rénmínbì guójìhuà|yp=}}
Since the late-2000s, the People's Republic of China (PRC) has sought to internationalize its official currency, the [[Finance:Renminbi|Renminbi]] (RMB). RMB internationalization accelerated in 2009 when China established the dim sum bond market and expanded [[Company:Cross-Border Inter-Bank Payments System|Cross-Border Trade]] RMB Settlement Pilot Project, which helps establish pools of offshore RMB liquidity.<ref name=":2" /><ref name=":3" /> The RMB was the 8th-most-traded currency in the world in 2013<ref>{{cite web|title=RMB now 8th most widely traded currency in the world|url=http://www.swift.com/about_swift/shownews?param_dcr=news.data%2Fen%2Fswift_com%2F2013%2FPR_RMB_september.xml|publisher=[[Organization:Society for Worldwide Interbank Financial Telecommunication|Society for Worldwide Interbank Financial Telecommunication]]|access-date=10 October 2013|archive-date=5 November 2015|archive-url=https://web.archive.org/web/20151105223715/http://www.swift.com/about_swift/shownews?param_dcr=news.data%2Fen%2Fswift_com%2F2013%2FPR_RMB_september.xml|url-status=dead}}</ref> and the 7th-most-traded in early 2014. By the end of 2014, RMB ranked 5th as the most traded currency, according to SWIFT's report, at 2.2% of [[Company:SWIFT|SWIFT]] payment behind [[Finance:Japanese yen|JPY]] (2.7%), GBP (7.9%), EUR (28.3%) and USD (44.6%). In February 2015, RMB became the second most used currency for trade and services, and reached the ninth position in forex trading. The RMB Qualified Foreign Institutional Investor (RQFII) quotas were also extended to five other countries&nbsp;— the UK (extended 15 October 2013), Singapore (22 October 2013), France (20 June 2014), Korea (18 July 2014), Germany (18 July 2014), and Canada (8 November 2014), each with the quotas of ¥80 billion except Canada and Singapore (¥50bn). Previously, only Hong Kong was allowed, with a ¥270 billion quota.

The launch of Shanghai–Hong Kong Stock Connect (SSE and HKEx) in November 2014 embarked China upon the next stage of internationalization. In January 2015, Chinese Premier Li Keqiang announced a planned second Stock Connect linking Shenzhen and Hong Kong exchanges. China's RMB internationalization and foreign exchange (FX) reforms are evolving rapidly{{When|date=July 2021}} and full convertibility is expected over the next couple of years.<ref name=":4">{{Cite journal|url = https://www.research.hsbc.com/midas/Res/RDV?p=pdf&key=qaq8Q1dIrV&n=424259.PDF|title = Asian FX Focus, RMB Q&A: The top 10 questions|date = 29 July 2014|journal = HSBC Global Research|access-date = 8 August 2014}}</ref> In 2014, Hong Kong removed the conversion limit of 20,000 RMB per day for its residents.<ref>{{Cite web|url=https://www.hkma.gov.hk/eng/news-and-media/speeches/2014/11/20141112-1/|title=Hong Kong Monetary Authority - Removal of RMB conversion limit for Hong Kong residents|first=Hong Kong Monetary|last=Authority|website=Hong Kong Monetary Authority}}</ref>

== History ==
Until the early years of the 21st century, the Renminbi was not fully convertible and its flow in and out of China faced heavy restrictions. Under instructions from the Chinese government, the [[Company:People's Bank of China|People's Bank of China]] (PBoC) began the move to full convertibility beginning around 2008. This has taken the form of permitting the use of RMB outside China for all current account transactions such as commercial trade, payment of services, interest payment, dividend payment, etc. and the use of RMB for certain approved capital account transactions such as foreign direct investment (FDI) and outward direct investment (ODI). Central banks and offshore Participating banks can invest excess RMB in the mainland interbank bond market through the [[Company:China Interbank Bond Market|China Interbank Bond Market]] (CIBM quota), invest into mainland China (through the RQFII quota), invest into offshore from mainland (through the QDII quota), including the onshore individual investment to offshore through the Qualified Domestic Individual Investors program (so-called QDII2).<ref name=":2" />

According to the [[Organization:Society for Worldwide Interbank Financial Telecommunication|Society for Worldwide Interbank Financial Telecommunication]] (SWIFT), the path of RMB internationalisation can be divided into three phases—first as usage for [[Finance:Trade finance|trade finance]], then for investment, and in the longer term, as [[Finance:Reserve currency|reserve currency]].<ref>{{cite web|title=RMB internationalisation: Perspectives on the future of RMB clearing|url=http://www.swift.com/assets/swift_com/documents/products_services/SWIFT_White_paper_RMB_internationalisation_EN.pdf|publisher=[[Organization:Society for Worldwide Interbank Financial Telecommunication|Society for Worldwide Interbank Financial Telecommunication]]|access-date=10 October 2013|archive-date=29 October 2013|archive-url=https://web.archive.org/web/20131029195306/http://www.swift.com/assets/swift_com/documents/products_services/SWIFT_White_paper_RMB_internationalisation_EN.pdf|url-status=dead}}</ref>

Before 2004, the yuan was not allowed outside of China. In 2004, China started to allow border trading in yuan, especially in the Southern and Western border.<ref name=":2">"RMB Settlement", Kasikorn Research Center, Bangkok, 8 February 2011</ref> HKMA first raised with the PBoC the idea of introducing personal renminbi business in Hong Kong as early as November 2001, to facilitate economic and social exchanges between Hong Kong and the Mainland and to channel renminbi cashnotes in Hong Kong back to the Mainland orderly through the banking system. In November 2003, the State Council approved the introduction of personal renminbi business in Hong Kong, which was followed by the appointment of the Clearing Bank, and establishment of payment system linkages and arrangements for cross-border renminbi cashnote delivery. Banks in Hong Kong started to offer renminbi deposit-taking, currency exchange, remittance and debit and credit card services to personal accounts on 25 February 2004.<ref name=":3">{{Cite web|url = http://www.hkma.gov.hk/eng/key-information/insight/20140218.shtml|title = Hong Kong as Offshore Renminbi Centre – Past and Prospects|date = 18 February 2014|access-date = 24 July 2014|publisher = HKMA|last = Chan|first = Norman T.L.}}</ref> {{As of|May 2014}}, 1.47% of world payments was settled in RMB, which ranked RMB as the 7th most traded currency in the world.<ref>{{Cite web|url = http://www.swift.com/assets/swift_com/documents/products_services/RMB_tracker_June2014_SDC_final.pdf|title = The Renminbi is the second most used currency for cross border payments with China and Hong Kong|date = 26 June 2014|access-date = 23 July 2013|website = SWIFT RMB Monthly Tracker 2014|publisher = SWIFT|archive-date = 13 July 2014|archive-url = https://web.archive.org/web/20140713184911/http://www.swift.com/assets/swift_com/documents/products_services/RMB_tracker_June2014_SDC_final.pdf|url-status = dead}}</ref> The average monthly RMB trade settlement rose from CN¥320 billion in 2013 to ¥480bn in 2014.

===2007: Creation of ''Dim Sum'' bonds and offshore RMB bond market  ===
The dim sum bond market generally refers to RMB-denominated bonds issued in Hong Kong. The majority of dim sum bonds are denominated in CNH, but some are linked to CNY (but paid in USD). In July 2007, ''dim sum'' bonds worth a total of US$657 million were issued for the first time by the China Development Bank.<ref>{{cite web|title=CDB to issue 5 bln yuan RMB bond in HK |url=http://english.gov.cn/2007-06/26/content_662569.htm |publisher=gov.cn |access-date=10 October 2013 |url-status=dead |archive-url=https://web.archive.org/web/20080705012749/http://english.gov.cn/2007-06/26/content_662569.htm |archive-date=5 July 2008}}</ref> These financial assets were issued to foreign investors in [[Finance:Renminbi|renminbi]], rather than the local currency.<ref name="wapo">{{Cite web|url=https://www.washingtonpost.com/dim-sum-bonds-are-fueling-chinas-currency-rise/2011/11/15/gIQAML23cN_story.html|title='Dim sum bonds' are fueling China's currency rise|first=Fion|last=Li|date=19 November 2011|via=www.washingtonpost.com}}</ref>

In June 2009, China allowed financial institutions in Hong Kong to issue dim sum bonds. HSBC was the first institution that issued these. In August 2010, McDonald was the first corporation that issued dim sum bonds. In October, the Asian Development Bank (ADB) raised a ¥1.2bn 10-year bond, and became the first [[Social:Supranational union|supranational agency]] which issued dim sum bonds and also the first issuer listed in the HKSE. The dim sum bond market grew 2.3 times from 2010 (¥35.8bn) to 2013 (¥116.6bn), with an outstanding amount at the end of 2013 of RMF 310bn.<ref name=":3" />

In August 2012, China and Taiwan signed a memorandum of understanding on new cross-strait currency settlement, and in March 2013, China Trust Commercial Bank became the first to issue RMB bonds in the Taiwan market (Formosa bond). In November, CCB (Hong Kong) issued a Formosa bond after mainland banks became eligible.<ref>{{Cite web|url = https://research.standardchartered.com/researchdocuments/Pages/ResearchArticle.aspx?&R=118579|title = Offshore RMB – A guide to Formosa investments|date = 24 June 2014|access-date = 24 July 2014|publisher = Standard Chartered Global Research}}</ref>

=== 2008: Cross-Border Trade RMB Settlement Pilot Project<ref name=":2" /> ===
Phase I: on 24 December 2008, China allowed import and export in RMB between (i) Yunnan province and countries in GMS including ASEAN countries (ii) Guangdong province and Hong Kong and Macau.

Phase II: on 1 July 2009, China officially announced regulation on the RMB Settlement Pilot Project and opened up Shanghai and four cities in Guangdong (Guangzhou, Shenzhen, Zhuhai and Dongguan) with Hong Kong, Macau and ASEAN countries.

On 1 July 2010, it expanded to Mainland Designated Enterprises (MDE) in 20 pilot areas (4 municipalities [Beijing, Tianjin, Chongqing, Shanghai], 12 provinces [Liaoning, Jiangsu, Zhejiang, Fujian, Shandong, Hubei, Guangdong, Hainan, Sichuan, Yunnan, Jilin, Heilongjiang] and 4 autonomous regions [Guangxi, Inner Mongolia, Xinjing Uygur, Tibet]), which allow cross border payments of current account items with any country in the world.

By 2014, RMB cross-border trade settlements reached RMB 5.9 trn making a 42.6% (year-over-year) increase, which represents 22% of China's trading volume.

===2009: Offshore Renminbi (CNH) ===
Since 2009, China has signed [[Finance:Currency swap|currency swap]] agreements with numerous countries and regions such as {{wipe|Argentina}}, {{wipe|Belarus}}, {{wipe|Brazil}}, {{wipe|Canada}}, ECB, [[Place:Hong Kong|Hong Kong]], Iceland, Indonesia, Malaysia, [[Place:Singapore|Singapore]], {{wipe|South Korea}}, Thailand, the {{wipe|United Kingdom}}, Uzbekistan and Tajikistan.<ref name="China Daily">{{Cite news|url=http://europe.chinadaily.com.cn/business/2015-09/05/content_21791172.htm |title=Tajikistan, China sign currency swap deal |date=5 September 2015 |website=China Daily}}</ref><ref name="reutersuzbekistan">{{cite news| url=https://www.reuters.com/article/china-uzbekistan-swap-idUSB9E7EN02P20110419 | work=Reuters | title=China signs 700 mln yuan currency swap deal with Uzbekistan | date=19 April 2011}}</ref><ref name="ftbrazil">{{cite news|last=Joe Leahy|title=Brazil and China agree currency swap|url=http://www.ft.com/intl/cms/s/0/015f526a-bc07-11e1-9aff-00144feabdc0.html|newspaper=[[Social:Financial Times|Financial Times]]|quote=China has launched an aggressive campaign of "currency swap diplomacy", signing about 20 such agreements over the past four years with countries ranging from Argentina to Australia and the United Arab Emirates.|access-date=10 October 2013}}</ref><ref>{{Cite web|url = http://www.kasikornbank.com/chinatrade/pdfdocumentdownload/importantdocuments/file2%20next%20decade%20asia%20booklet%20world%20economic%20summary.pdf|title = Next Decade: ASIA|year = 2013|access-date = 23 July 2014|website = Kasikornbank: China Economic Issues|publisher = Kasikorn Research Center (KResearch)}}</ref> The renminbi deposits in HK gradually grew from ¥12 billion in 2004 to ¥59 billion in 2009.<ref name=":3" />

On '''17 August 2010''', PBoC issued a policy to allow Central Banks, RMB offshore Clearing Banks and offshore Participating Banks to invest excess RMB in debt securities or in the onshore Inter-bank Bond Market. In October, China further opened up both FDI and ODI in RMB (Pilot RMB Settlement of Outward Direct Investment) and nominated Xinjiang as the first pilot province (which, in early 2011, expanded to 20 pilot areas).<ref name=":0" /> In November 2010, China and Russia began trading in their own currencies, abandoning the {{wipe|United States dollar}} as the medium of exchange in bilateral trade.<ref>{{cite news|title=Sidestepping the U.S. Dollar, a Russian Exchange Will Swap Rubles and Renminbi|url=https://www.nytimes.com/2010/12/15/business/global/15iht-ruble15.html|newspaper={{wipe|The New York Times}}|access-date=10 October 2013|first=Andrew E.|last=Kramer|date=14 December 2010}}</ref> This was soon followed by Japan in December 2011.<ref>{{cite news|title=China, Japan to Back Direct Trade of Currencies|url=https://www.bloomberg.com/news/2011-12-25/china-japan-to-promote-direct-trading-of-currencies-to-cut-company-costs.html|publisher={{wipe|Bloomberg News}}|access-date=10 October 2013}}</ref> On 19 December, the direct trading of yuan against [[Physics:Thai baht|Thai baht]] was launched in CFETS (Interbank FX trading system) in Yunnan and on 31 December, PBC released the ''Announcement of the People’s Bank of China Concerning the Implementation of Measures for the Pilot Program of Allowing Fund Management Companies and Securities Companies Approved as Renminbi Qualified Foreign Institutional Investors (RQFII) to Invest in Domestic Securities Market. ''The RQFII program allows RMB investment funds to be set up in Hong Kong and invest in mainland China's securities markets.<ref name=":1">{{Cite web|url = http://www.pbc.gov.cn/publish/english/955/2012/20120319093132597913401/20120319093132597913401_.html|title = Highlights of China's Monetary Policy in 2011|date = 28 February 2012|access-date = 23 July 2014|publisher = PBC}}</ref>

In the first quarter of '''2011''', the Renminbi surpassed the Russian rouble in terms of international trading volume for the first time in history.<ref>{{cite news|title=Yuan Overtakes Ruble as World Payments Currency: SWIFT|url=https://www.bloomberg.com/news/2013-02-27/yuan-overtakes-ruble-as-world-payments-currency-swift.html|publisher={{wipe|Bloomberg News}}|access-date=10 October 2013}}</ref>

=== 2013: Shanghai Free Trade Zone (SFTZ) ===
In June 2013, the United Kingdom became the first G-7 country to set up an official currency swap line with China.<ref name="wsjchina">{{cite news|title=Q&A: What's a Currency Swap Line?|url=https://blogs.wsj.com/moneybeat/2013/10/10/qa-whats-a-currency-swap-line/|newspaper={{wipe|The Wall Street Journal}}|access-date=10 October 2013|quote=In June, Britain was the first G-7 country to officially set up a currency swap line with China}}</ref>

The Shanghai Free-Trade Zone (SFTZ) was launched on 29 September 2013 with key implementation details announced in May 2014. The SFTZ was being used as a test ground for trade, investment and financial reforms, before the roll out to nationwide. The RMB can flow freely between Free Trade Accounts (FTA), non-resident onshore accounts and offshore accounts. Transactions between resident onshore accounts outside SFTZ and FTA with the same entity are also allowed, provided they do not involve capital account transactions that are not yet approved by [[Company:People's Bank of China|PBoC]] and SAFE.<ref name=":4" />

As of 2013, the RMB is the 8th most traded currency in the world.<ref>{{cite web|title=RMB now 8th most traded currency in the world|url=http://www.swift.com/about_swift/shownews?param_dcr=news.data%2Fen%2Fswift_com%2F2013%2FPR_RMB_september.xml|publisher=[[Organization:Society for Worldwide Interbank Financial Telecommunication|Society for Worldwide Interbank Financial Telecommunication]]|access-date=10 October 2013|archive-date=5 November 2015|archive-url=https://web.archive.org/web/20151105223715/http://www.swift.com/about_swift/shownews?param_dcr=news.data%2Fen%2Fswift_com%2F2013%2FPR_RMB_september.xml|url-status=dead}}</ref>

As of '''July 2014''', 25 countries have signed the RMB Bilateral Swap Agreement with [[Company:People's Bank of China|PBoC]] with total facilities of over ¥2.7 trillion.

The scale of the offshore renminbi (CNH) market is still limited at the moment, with offshore renminbi deposits (around ¥1.5 trillion, of which 70% are in Hong Kong) only about 1% of that onshore (around ¥100 trillion), which is much lower than the ratio of 30% of offshore versus onshore US dollar deposits. The average daily turnover of offshore renminbi foreign exchange market (CNH) was about US$20 billion by the end of 2013.<ref name=":3" /> On 17 November, synchronised with the Shanghai–Hong Kong Stock Connect debut, the HKMA has lifted the daily yuan conversion cap (¥20,000).<ref>{{Cite news|url = http://www.scmp.com/business/economy/article/1638077/hkma-says-yuan-exchange-cap-lifted-november-17-when-stock-connect|title = HKMA scraps 20,000 yuan daily conversion cap in landmark reform|last = Yiu|first = Enoch|date = 13 November 2014|work = South China Morning Post|access-date = 20 March 2015}}</ref>

=== 2016: Cross Border Financing ===
Effective from 3 May 2016, PBoC expanded its pilot program for macro prudential management of cross-border financing from FTZ to nationwide.

=== 2019: QFII and RQFII lifted ===
In September 2019, SAFE announced that the QFII (launched 2002) and RQFII (since 2011) quotas are revoked. RMB's share as a global payment currency ranked #5 as of August 2019 with market share of 2.22% preceding by USD (42.52%), EUR (32.06%), GBP (6.21%) and JPY (3.61%)<ref>{{Cite web|url=https://www.swift.com/|title=RMB Tracker|date=19 September 2019|website=SWIFT|url-status=dead|archive-url=https://web.archive.org/web/20190920203510/https://www.swift.com/|archive-date=20 September 2019|access-date=20 September 2019}}</ref>

=== 2020: QFII and RQFII merged ===
In September 2020, PBOC and SAFE announced that the QFII and RQFII, the two major inbound investment programs, will be combined starting in November. Other changes include simplified application, shorten review cycle, no restriction on intermediary, reduced data submission requirements and expanded scope of investment. Separately SAFE granted additional US$3.36 billion to 18 institutions under QDII scheme, bringing the total scheme to US$107.34 billion between 157 institutions.<ref>{{Cite news|date=18 September 2020|title=Chinese Regulator to Combine QFII, RQFII from 1 November|work=Regulation Asia|url=https://www.regulationasia.com/chinese-regulators-to-combine-qfii-rqfii-from-1-november/}}</ref>

FTSE Russell includes Chinese government bonds in FTSE World Government Index (WGBI).

=== RMB as a reserve currency ===

The road to the RMB Internationalization is far from complete.<ref name=":5" />
* First, the size of the home economy must be large relative to others. 
* Second, economic stability in the form of low inflation, small budget deficits and stable growth is also important. China's record of supportive government policies and macro-economic stability has undoubtedly contributed to the RMB's appeal in recent years. The bursting of Japan's bubble in the early 1990s was arguably one of the main reasons why yen internationalization stalled. 
* Third, strong official and institutional support. This was an important reason for the dollar's adoption as a global currency after the Second World War, formalised through the [[Finance:Bretton Woods system|Bretton Woods system]]. China has been doing that in the last few years, promoting the use of RMB and its infrastructure with [[Organization:ASEAN|ASEAN]], Russia, United Kingdom, Germany, Canada, Australia, etc. At the China Development Forum in March 2014, the People's Bank of China (PBoC) stressed the importance of strengthening financial regulations, establishing a deposit insurance scheme and improving market-driven exit mechanisms for financial institutions, while pushing forward reforms.
* Fourth, deep, open and well-regulated capital markets are necessary so the currency can be used to finance trade as well as provide a large enough market in securities for investors. The opening up of China's onshore capital market will be an important step in the RMB becoming a major investment currency. This is one area where progress has been deliberately slow. For the RMB to be a truly global and become a more widely held reserve currency there needs to be greater access for foreign investors to local capital markets, even deeper global RMB liquidity and wider cross-border flow channels.
On 14 August 2020, the People's Bank of China released the "Report on the Internationalization of RMB in 2020". The report said that RMB's function of reserve currency has gradually emerged. In the first quarter 2020, the share of RMB in global foreign exchange reserves rose to 2.02%, a record high. As of the end of 2019, the People's Bank of China has set up RMB clearing banks in 25 countries and regions outside of Mainland China, which has made the use of RMB more secure and transaction costs have decreased.<ref>{{cite news |title=《2020年人民币国际化报告》发布：人民币在全球外汇储备中占比创新高|url=http://www.xinhuanet.com/fortune/2020-08/15/c_1126371624.htm |website= Xinhua Net |access-date=2020-08-18|archive-url=https://web.archive.org/web/20200819024639/http://www.xinhuanet.com/fortune/2020-08/15/c_1126371624.htm|archive-date=2020-08-19}}</ref>

==Major milestones==
* 2002, Domestic Securities Investment by Qualified Foreign Institutional Investor (QFII regulation) was announced in November<ref>{{Cite news|url = http://news.xinhuanet.com/fortune/2006-08/26/content_5008366.htm|archive-url = https://web.archive.org/web/20081109012327/http://news.xinhuanet.com/fortune/2006-08/26/content_5008366.htm|url-status = dead|archive-date = 9 November 2008|title = 合格境外机构投资者境内证券投资管理办法|date = 26 August 2006|agency = Xinhua News Agency|access-date = 13 August 2014}}</ref> allowed foreign investors to access mainland stock markets (A-shares) 
* 2003. PBoC designates BoC-HK as RMB clearing and settlement bank. 
* 2004, RMB deposits in Hong Kong is allowed. By the end of 2013 RMB deposits totalled ¥860 billion, an increase from ¥315 billion in 2010, which account for around 12% of total deposits in the Hong Kong banking system, up from 1% in 2008.<ref name=":5">{{Cite journal|url = http://www.centralbanking.com/central-banking-journal/advertisement/2357296/renminbi-as-a-reserve-currency|title = Renminbi as a reserve currency|last = Zhu|first = John|date = 11 August 2014|journal = Central Banking Journal|access-date = 13 August 2014}}</ref>
* 2006 (Apr), the Chinese government announced the Qualified Domestic Institutional Investor (QDII) scheme, allowing Chinese institutions and residents to entrust Chinese commercial banks to invest in financial products overseas. The investment was initially limited to fixed-income and money market products.
* 2007, establishment of the Offshore RMB bond market—'dim sum bonds'—which has doubled in size each year since 2008.
* 2008 (Dec), implementation of Cross-Border Trade RMB Settlement Pilot Project. The first Bilateral Swap Agreement was signed with South Korea. 
*  2011 (Dec), PBC released the Announcement of the People's Bank of China Concerning the Implementation of Measures for the Pilot Program of Allowing Fund Management Companies and Securities Companies Approved as Renminbi Qualified Foreign Institutional Investors (RQFII) to Invest in Domestic Securities Market. The RQFII program allows RMB investment funds to be set up in Hong Kong and invest in mainland China's securities markets.<ref name=":1" /> As of July 2014, the RQFII scheme as extended to six countries with total approved quotas of ¥640bn. 
* In December 2013, the RMB overtook the euro to become the second most-used currency in global trade finance after the US dollar, according to the Society for Worldwide Interbank Financial Telecommunication (SWIFT).<ref>{{Cite news|url = http://www.ibtimes.com/yuan-overtakes-euro-second-most-used-currency-international-trade-settlement-swift-1492476|title = Yuan Overtakes Euro As Second-Most Used Currency in International Trade Settlement: SWIFT|last = Sreeja|first = VN|date = 3 December 2013|work = International Business Times|access-date = 13 August 2014}}</ref>  
* 2014 (April), the China Securities Regulatory Commission (CSRC) and the Securities & Futures Commission of Hong Kong (SFC) announced in a joint statement a trial trading program known as Shanghai-Hong Kong Stock Connect, which will allow two-way cross-market stock investment by qualified Mainland Chinese and Hong Kong investors. The pilot program will operate between the Shanghai Stock Exchange (SSE), the Stock Exchange of Hong Kong Limited (SEHK), the China Securities Depository and Clearing Corporation Limited (ChinaClear) and the [[Company:Hong Kong Exchanges and Clearing|Hong Kong Securities Clearing Company Limited]] (HKSCC).  SSE and SEHK will allow investors to trade eligible shares listed on each other's markets through local securities firms or brokers.<ref>{{Cite news|url = http://www.lexology.com/library/detail.aspx?g=d10d7908-d919-4d1f-bf69-de35aadd72f9|title = Shanghai-Hong Kong stock connect - a new trial program for cross-market stock investment|last = Cao|first = Hui (Hannah)|date = 18 April 2014|work = Steptoe & Johnson LLP|access-date = 3 October 2014}}</ref>  
* 2014 (May), Shanghai Free Trade Zone materialized and later (15 July), SAFE issued Circular 36 to extend benefits to foreign-invested enterprises (FIEs) in other 16 industrial parks and economic zones.<ref>{{Cite news|url = http://www.lexology.com/library/detail.aspx?g=df6e6540-7c1a-4413-9f5f-0dcc1932f317|title = SAFE Circular 36: liberalising capital account settlement for FIEs|last = Tam|first = Betty F.K.|date = 5 August 2014|work = Mayer Brown LLP|access-date = 26 August 2014}}</ref>  
* as of August 2014: (i) more than 10,000 financial institutions are doing business in RMB, up from just 900 in June 2011; (ii) the RMB is now used to settle 18% of China's total trade, from just 3% in 2010; (iii) China has currency swap agreements with 25 central banks with the total amount of over ¥2.7 trillion; (iv) there are now eight official offshore RMB clearing centres – Hong Kong, Macau, Taiwan, Singapore, London, Germany, Korea, and the latest is Canada (signed November 2014).  
* 2014 (17 Nov), the Shanghai-Hong Kong Stock Connect debuted with a bang, hitting its RMB13bn one-day trading cap at 13:57 HK time (less than five hours after markets opened).
* 2015 (Jul), PBoC open up the $5.7 trn interbank bond market to foreign Central Banks, Sovereign Wealth Funds and international financial institutions. Previously quota was given to the relevant foreign investors on a case-by-case basis. The relevant investors can conduct trading of cash bond, repo, bond lending, bond forward, interest rate swap, forward rate agreement and other transactions permitted by the PBC. Relevant overseas institutional investors can decide on their own the size of their investments. 
* 2015 (11 Aug), PBoC improved the quotation mechanism of USD/CNY to become more market-based.<ref>{{Cite news|url=http://www.pbc.gov.cn/english/130721/3002189/index.html|title=The Central Parity of RMB against US Dollar Became More Market-based in 2015|date=7 January 2016|access-date=9 May 2016}}</ref> 
* 2015 (8 Oct), the China International Payments System (CIPS) is launched,<ref name="CNTV-2015-10-15-CIPS">{{cite web
|author= Tom McGregor
|title= China international payments system goes into action
|url= http://english.cntv.cn/2015/10/15/ARTI1444888930837650.shtml
|publisher= CNTV
|date= 2015-10-15
|access-date= 20 October 2015
|archive-url= https://web.archive.org/web/20160821131530/http://english.cntv.cn/2015/10/15/ARTI1444888930837650.shtml
|archive-date= 21 August 2016
|url-status= dead
}}</ref><ref name="FT-2015-10-08-CIPS">{{cite news
|author= Gabriel Wildau
|title= China launch of renminbi payments system reflects Swift spying concerns
|url= http://www.ft.com/cms/s/0/84241292-66a1-11e5-a155-02b6f8af6a62.html
|newspaper= [[Social:Financial Times|Financial Times]] |date= 2015-10-08
}}</ref> as an alternative to SWIFT.
* 2016 (24 Feb), PBoC lifted the barrier into China Interbank Bond market (IBB), the world 3rd largest credit market (RMB 48 trn). 
* 2016 (3 May), PBoC expended the pilot program for macro prudential management of cross border financing from free trade zone to nationwide.
* 2016 (24 June), direct RMB/KRW trading in CFETS
* 2016 (Aug), the [[Organization:World Bank|World Bank]], the first issue of SDR bonds in CIBM (SDR 500m, 3-year payable in RMB) with bid-to-cover ration of 2.47<ref>{{Cite web|url=http://www.pbc.gov.cn/english/130721/3131653/index.html|title=The World Bank Issued SDR-Denominated Bonds in China's Interbank Bond Market|date=31 August 2016|website=The People's Bank of China|access-date=24 July 2017}}</ref>
* 2016 (1 Oct), RMB is included in SDR Basket (i.e. 41.73% USD, 30.93% EUR, 8.33% JPY, 8.09% GBP and 10.92%  CNY)
* 2017 (16 May), PBC and HKMA jointly announced Bond Connect to enable bond trading between Mainland and HK institutional investors<ref>{{Cite web|url=http://www.pbc.gov.cn/english/130721/3309693/index.html|title=Joint Announcement of the People's Bank of China and the Hong Kong Monetary Authority|date=16 May 2017|website=The People's Bank of China|access-date=24 July 2017}}</ref> 
* 2018 (Mar), Oil futures contract launched, denominated in yuan, on the Shanghai International Energy Exchange.<ref>{{cite web |last1=Falcone |first1=Johnathan |title=The People's Bank of China's Monetary Armament: Capabilities and Limitations of Evolving Institutional Power |url=https://www.armyupress.army.mil/Journals/Military-Review/English-Edition-Archives/July-August-2020/Falcone-China-Monetary-Armament/ |website=Military Review |access-date=7 March 2021}}</ref>
*2019 (3 July), chongwa (Macau) Financial Assets Exchange Co., Ltd(MOX). and China central Depository & Clearing Co., Ltd. held a memorandum of cooperation signing ceremony in Macau.This signing is the perfect combination of Macau bond market infrastructure and mainland bond market infrastructure, marking the interconnection of domestic and foreign bond markets in terms of issuance, registration and custody.
*2019 (11 June). RQFII and QFII quotas are lifted
*2020 RMB share of foreign exchange market rose to 4.3% (up 0.3% from 2016), ranked 5th globally but only used for 1.76% of payments, despite China 10% contribution of global trade in goods. More than 70 central banks and monetary authorities have already incorporated RMB into their FX reserves. PBoC said China will further facilitate cross-border use of RMB to boost trade and investment.<ref>{{Cite web|last=Editors|first=Regulation Asia|date=2020-08-19|title=China to Promote Cross-Border Use of Renminbi, says PBOC|url=https://www.regulationasia.com/china-to-promote-cross-border-use-of-renminbi-says-pboc/|access-date=2020-08-20|website=Regulation Asia|language=en-GB}}</ref>

==  Implications for the financial industry ==
* '''Trade settlement'''  - The internationalization of the RMB allows foreign companies trading with mainland Chinese companies to settle the trade in RMB, thus, reducing FX cost, open up the opportunity to the larger markets and often secure better trade terms. 
* '''Financing and borrowing'''  - creation of dim sum and offshore RMB bond markets offer RMB borrows the chance to access a competitive and diversify funding sources. It is also opened up opportunities for international and retail investors.  
* '''Capital management'''  - free trade zone companies may borrow and lend funds directly with overseas (RMB cash pooling). This allows multinational companies to centrally manage their funds and make payments directly in RMB globally.<ref>{{Cite news|url = http://www.lexology.com/library/detail.aspx?g=cc9cd91e-93d5-4cd5-b295-c85614f538c0|title = RMB internationalisation and its implication for Europe|last = Wang|first = Shengzhe|date = 6 August 2014|work = Baker & McKenzie Newsletter|access-date = 26 August 2014}}</ref>
According to the [[Organization:Society for Worldwide Interbank Financial Telecommunication|Society for Worldwide Interbank Financial Telecommunication]] (SWIFT), many financial institutions are currently building up an RMB trade settlement, payments, foreign exchange, derivatives and clearing capabilities because the internationalization of the RMB has led to new sources of revenue for banks.<ref>{{cite web|title=RMB internationalisation: Implications for the global financial industry|url=http://www.swift.com/assets/swift_com/documents/products_services/RMB_White_paper_internationalisation.pdf|publisher=[[Organization:Society for Worldwide Interbank Financial Telecommunication|Society for Worldwide Interbank Financial Telecommunication]]|access-date=10 October 2013|archive-date=14 April 2014|archive-url=https://web.archive.org/web/20140414225942/http://www.swift.com/assets/swift_com/documents/products_services/RMB_White_paper_internationalisation.pdf|url-status=dead}}</ref>

''[need elaboration on the impacts to the certain aspects to RMB internationalization e.g. on the importance of BSA, the offshore Clearing banks, Commodity prices index to RMB, RMB as Central Banks' reserve currency, etc.]''

== List of RMB [[Finance:Currency swap|Bilateral Swap]] Agreements  ==
{|class="wikitable sortable" style="text-align:center;"
|-
! Earliest agreement<ref name=":0">"RMB Settlement", p.10. Kasikorn Research Center (KResearch), Bangkok, 8 February 2011</ref><ref>{{Cite web|url = http://www.pbc.gov.cn/publish/english/955/index.html|title = The People's Bank of China, News|access-date =23 July 2014 |publisher =PBC }}</ref>
! Economic partner
! Max. value in foreign currency<br />(including extensions)
! Max. value in RMB<br />(including extensions)
|-
| 12 December 2008
| {{flag|South Korea}}
| KRW 64 trillion
| [[Finance:Renminbi|¥]]360 billion<ref>{{cite news|title=Korea, China Seek Permanent Currency Swap|url=http://english.chosun.com/site/data/html_dir/2010/07/06/2010070600795.html|newspaper=The Chosun Ilbo|access-date=10 October 2013}}</ref><ref>{{Cite news|url = http://en.ce.cn/Markets/currencies/201405/31/t20140531_2904582.shtml|title = China lends first foreign-denominated funds under currency swap|date = 31 May 2014|agency = Xinhua News Agency|access-date = 24 July 2014}}</ref> 
|-
| 25 November 2020
| {{flag|Hong Kong}}
| HKD 590 billion
| [[Finance:Renminbi|¥]]500 billion<ref name=":0" /><ref>{{Cite web|url = https://www.hkma.gov.hk/eng/news-and-media/press-releases/2020/11/20201125-6/.html|title = People's Bank of China and Hong Kong Monetary Authority renewed Currency Swap Agreement|date = 25 November 2020|access-date = 14 July 2021|publisher = Hong Kong Monetary Authority}}</ref> 
|-
| 8 February 2009
| {{flag|Malaysia}}
| [[Finance:Malaysian ringgit|MYR]] 90 billion
| [[Finance:Renminbi|¥]]180 billion<ref>{{cite web|title=China, Malaysia extend currency swap deal|url=http://news.xinhuanet.com/english/business/2012-02/08/c_131398910.htm|archive-url=https://web.archive.org/web/20140312023923/http://news.xinhuanet.com/english/business/2012-02/08/c_131398910.htm|url-status=dead|archive-date=12 March 2014|agency=Xinhua News Agency|access-date=10 October 2013}}</ref> 
|-
| 11 March 2009
| {{flag|Belarus}}
| [[Finance:Belarusian rubel|BYR]] 16 trillion
| [[Finance:Renminbi|¥]]7 billion<ref>{{cite news|title=China, Belarus agree on 20b yuan currency swap|url=http://www.chinadaily.com.cn/bizchina/2009-03/11/content_7569361.htm|newspaper=China Daily|access-date=10 October 2013}}</ref><ref>{{cite web|title=China, Belarus extended currency swap|url=http://www.pbc.gov.cn/publish/goutongjiaoliu/524/2015/20150511143056717887261/20150511143056717887261_.html|access-date=15 May 2015}}</ref> 
|-
| 23 March 2009
| {{flag|Indonesia}}
| [[Finance:Indonesian rupiah|IDR]] 175 trillion 
| [[Finance:Renminbi|¥]]100 billion<ref>{{cite news|author1=Novrida Manurung |author2=Neil Chatterjee |title=Indonesia Seeks Bilateral Swap Deals With Two More Central Banks|url=https://www.bloomberg.com/news/2013-09-10/indonesia-seeks-bilateral-swap-deals-with-two-more-central-banks.html|publisher={{wipe|Bloomberg News}}|access-date=10 October 2013|quote=Indonesia and China in 2009 agreed on a three-year 100-billion yuan ($16 billion) currency swap to ease foreign-exchange shortages and aid bilateral trade and investment.}}</ref> 
|-
| 29 March 2009
| {{flag|Argentina}}
| ARS 38 billion
| [[Finance:Renminbi|¥]]70 billion<ref>{{cite news|title=UPDATE 1-Argentina, China swap a "contigency"- central bank|url=https://www.reuters.com/article/argentina-china-currency-idUSN3140947120090331|work={{wipe|Reuters}}|access-date=10 October 2013|date=31 March 2009}}</ref> 
|-
| 9 June 2010
| {{flag|Iceland}}
| ISK 66 billion 
| [[Finance:Renminbi|¥]]3.5 billion<ref>{{cite news|title=China central bank signs 3.5 bln yuan currency swap deal with Iceland|url=https://www.reuters.com/article/china-cenbank-iceland-idUSB9N0HE00J20130930|work={{wipe|Reuters}}|access-date=13 October 2013|first=Jonathan|last=Standing|date=30 September 2013}}</ref> 
|-
| 23 July 2010
| {{flag|Singapore}}
| [[Finance:Singapore dollar|SGD]] 60 billion
| [[Finance:Renminbi|¥]]300 billion<ref>{{cite news|title=China, Singapore Double Currency Swap Agreement to $48 Billion|url=https://www.bloomberg.com/news/2013-03-08/china-singapore-double-currency-swap-agreement-to-48-billion.html|publisher={{wipe|Bloomberg News}}|access-date=10 October 2013}}</ref> 
|-
| 18 April 2011
| {{flag|New Zealand}}
| NZD 5 billion
| [[Finance:Renminbi|¥]]25 billion<ref>{{cite news|title=Chinese currency swap established|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10720302|newspaper=The New Zealand Herald|access-date=10 October 2013|date=19 April 2011}}</ref>  
|-
| 19 April 2011
| {{flag|Uzbekistan}}
| UZS 167 billion
| [[Finance:Renminbi|¥]]0.7 billion<ref name="reutersuzbekistan"/>
|-
| 6 May 2011
| {{flag|Mongolia}}
| [[Finance:Mongolian tögrög|MNT]] 2 trillion
| [[Finance:Renminbi|¥]]15 billion<ref>{{cite web|title=Establishment of a Bilateral Local Currency Swap Supplemental Agreement between the People's Bank of China and Bank of Mongolia|url=http://www.pbc.gov.cn/publish/english/955/2012/20120323091436517967877/20120323091436517967877_.html|publisher=[[Company:People's Bank of China|People's Bank of China]]|access-date=10 October 2013}}</ref><ref>{{cite news|title=Mongolia Central Bank to Sign Currency Swap Deal With China|url=https://online.wsj.com/news/articles/SB10001424052748703992704576304443389379816|newspaper={{wipe|The Wall Street Journal}}|access-date=10 October 2013}}</ref> 
|-
| 13 June 2011
| {{flag|Kazakhstan}}
| [[Finance:Kazakhstani tenge|KZT]] 150 billion
| [[Finance:Renminbi|¥]]7 billion<ref>{{cite news|title=China, Kazakhstan sign currency swap deal|url=http://english.people.com.cn/90001/90776/90883/7409000.html|newspaper=People's Daily|access-date=10 October 2013}}</ref> 
|-
| 23 June 2011
| {{flag|Russian Federation}}
| RUB 815 billion
| [[Finance:Renminbi|¥]]150 billion<ref name=":1" /><ref>{{Cite news|url = http://www.nasdaq.com/article/pboc-signs-currency-swap-deal-with-russia-20141013-00271|title = Russia and China Open Currency-Swap Line|last =Ostroukh |first =Andrey |date = 13 October 2014|work = Dow Jones Business News|access-date = 14 October 2014}}</ref><ref>{{Cite news|url=http://www.pbc.gov.cn/english/130721/3024330/index.html|title=People's Bank of China and Central Bank of the Russian Federation Successfully Launched Bilateral Currency Swap Arrangement|date=2 March 2016|access-date=9 May 2016}}</ref> 
|-
| 22 December 2011
| {{flag|Thailand}}
| [[Physics:Thai baht|THB]] 320 billion
| [[Finance:Renminbi|¥]]70 billion<ref>{{cite news|title=Thai-China deals signed|url=http://www.bangkokpost.com/learning/learning-from-news/272219/thai-china-deals-signed|newspaper=Bangkok Post|access-date=10 October 2013}}</ref><ref>{{Cite news|url = http://www.pbc.gov.cn/publish/english/955/2014/20141224145233032861799/20141224145233032861799_.html|title = Fresh Progress in China-Thailand Financial Cooperation|date = 2014-12-24|work = The People's Bank of China|access-date = 2014-12-26}}</ref> 
|-
| 23 December 2011
| {{flag|Pakistan}}
| [[Finance:Pakistani rupee|PKR]] 140 billion
| [[Finance:Renminbi|¥]]10 billion<ref>{{cite web|last=JOE McDONALD|title=China announces currency swap with Pakistan|url=https://news.yahoo.com/china-announces-currency-swap-pakistan-040458122.html|agency=Associated Press|access-date=10 October 2013}}</ref> 
|- 
| 17 January 2012
| {{flag|United Arab Emirates}}
|  [[Finance:United Arab Emirates dirham|AED]] 20 billion
| [[Finance:Renminbi|¥]]35 billion<ref>{{cite news|title=China, UAE sign 35 billion yuan currency swap: PBOC|url=https://www.reuters.com/article/us-china-uae-currency-idUSTRE80G19020120117|work={{wipe|Reuters}}|access-date=10 October 2013|date=17 January 2012}}</ref> 
|-
| 21 February 2012
| {{flag|Turkey}}
| [[Finance:Turkish lira|TRY]] 3 billion
| [[Finance:Renminbi|¥]]10 billion<ref>{{cite news|title=China, Turkey Sign $1.6 Billion, Three-Year Yuan-Lira Currency Swap Accord|url=https://www.bloomberg.com/news/2012-02-21/china-turkey-sign-3-billion-liras-currency-swap-accord-1-.html|publisher={{wipe|Bloomberg News}}|access-date=10 October 2013}}</ref> 
|-
| 22 March 2012
| {{flag|Australia}}
| [[Finance:Australian dollar|AUD]] 30 billion
| [[Finance:Renminbi|¥]]200 billion<ref>{{cite news|author1=Simon Rabinovitch |author2=Neil Hume |title=China and Australia in $31bn currency swap|url=http://www.ft.com/intl/cms/s/0/4b6c4ab6-7404-11e1-bcec-00144feab49a.html|newspaper=[[Social:Financial Times|Financial Times]]|access-date=10 October 2013}}</ref> 
|-
| 26 June 2012
| {{flag|Ukraine}}
| [[Finance:Ukrainian hryvnia|UAH]] 19 billion
| [[Finance:Renminbi|¥]]15 billion<ref>{{cite news|last=Interfax-Ukraine|title=Ukrainian, Chinese central banks sign $2.4 billion currency swap deal|url=http://www.kyivpost.com/content/business/ukrainian-chinese-central-banks-sign-24-billion-cu-308811.html|newspaper=Kyiv Post|access-date=12 October 2013}}</ref> 
|- 
| 26 March 2013<ref>{{Cite web|url = http://www.pbc.gov.cn/publish/english/955/2013/20130401084905294278302/20130401084905294278302_.html|title = PBC Signed Bilateral Local Currency Swap Agreement with Banco Central do Brasil|date = 1 April 2013|access-date = 23 July 2014|website = The People's Bank of China|publisher = PBC}}</ref>
| {{flag|Brazil}}
| [[Finance:Brazilian real|BRL]] 60 billion 
| [[Finance:Renminbi|¥]]190 billion<ref name="ftbrazil"/>
|-
| 22 June 2013
| {{flag|United Kingdom}}
| [[Finance:Pound sterling|GBP]] 21 billion
| [[Finance:Renminbi|¥]]200 billion<ref>{{cite news|title=UK and China in £21bn currency swap deal|url=https://www.bbc.co.uk/news/business-23020718|publisher=BBC|access-date=10 October 2013|date=23 June 2013}}</ref> 
|-
| 9 September 2013
| {{flag|Hungary}}
|  [[Finance:Hungarian forint|HUF]] 375 billion
| [[Finance:Renminbi|¥]]10 billion<ref>{{cite news|title=China, Hungary sign currency swap deal|url=http://www.chinadaily.com.cn/business/2013-09/10/content_16956399.htm|newspaper=China Daily|access-date=10 October 2013}}</ref> 
|-
| 12 September 2013
| {{flag|Albania}}
|  ALL 35.8 billion
| [[Finance:Renminbi|¥]]2 billion<ref>{{cite news|title=CNH Tracker-China's cross-border payment woes drive companies to yuan|url=https://www.reuters.com/article/markets-offshore-yuan-idUSL3N0HF0FK20130919|work={{wipe|Reuters}}|access-date=13 October 2013|quote=China's central bank has signed a bilateral currency swap agreement worth 2 billion yuan ($327 million) with the Albanian central bank, in a move to boost trade and investment between the two countries.|date=19 September 2013}}</ref>  
|-
| 9 October 2013
| {{flag|European Union}}
| [[Finance:Euro|EUR]] 45 billion
| [[Finance:Renminbi|¥]]350 billion<ref>{{cite web|title=Chinese, European central banks in currency swap deal|url=https://www.google.com/hostednews/afp/article/ALeqM5gN65D6TRxJBRr4i9I_PLxXe6FmFw?docId=44699e1c-8426-4925-81c6-fa4be593589b|agency=Agence France-Presse|access-date=10 October 2013}}</ref> 
|-
| 21 July 2014
| {{flag|Switzerland}}
| CHF 21 billion
| [[Finance:Renminbi|¥]]150 billion<ref>{{cite web|title=China, Switzerland sign currency swap agreement|url=http://english.sina.com/china/2014/0721/720344.html|publisher=Beijing Time|access-date=21 July 2014}}</ref> 
|-
| 16 September 2014
| {{flag|Sri Lanka}}
| LKR 225 billion
| [[Finance:Renminbi|¥]]10 billion<ref>{{cite web|title=PBC Signed Local Currency Swap Agreement with Central Bank of Sri Lanka|url=http://www.pbc.gov.cn/publish/english/955/2014/20140919103318111956276/20140919103318111956276_.html|publisher=PBC|access-date=22 September 2014}}</ref> 
|-
| 3 November 2014
| {{flag|Qatar}}
| QAR 20.8 billion
| [[Finance:Renminbi|¥]]35 billion<ref>{{Cite news|url = http://www.cpifinancial.net/news/post/28873/qatar-central-bank-peoples-bank-of-china-sign-currency-swap-deal|title = Qatar Central Bank, People's Bank of China sign currency swap deal|last = Amlôt|first = Robin|date = 4 November 2014|work = CPI Financial|access-date = 5 November 2014}}</ref> 
|-
| 8 November 2014
| {{flag|Canada}}
| CAD 30 billion
| [[Finance:Renminbi|¥]]200 billion<ref>{{cite news|last=Andrea Hopkins|title= Chinese, Canadian central banks agree to 200 bln yuan currency swap|url=https://www.reuters.com/article/china-canada-yuan-idUSL4N0SY0BJ20141108|work={{wipe|Reuters}}|access-date=8 November 2014}}</ref> 
|-
|23 December 2014
|{{flag|Nepal }}
|NPR  
|[[Finance:Renminbi|¥]] billion<ref>{{Cite news|url = http://www.ekantipur.com/2014/12/25/business/nepal-china-sign-currency-swap-deal/399500.html|title = Nepal, China sign currency swap deal|date = 2014-12-25|work = The Kathmandu Post|access-date = 2014-12-26|archive-date = 26 December 2014|archive-url = https://web.archive.org/web/20141226112057/http://www.ekantipur.com/2014/12/25/business/nepal-china-sign-currency-swap-deal/399500.html|url-status = dead}}</ref>
|-
|18 March 2015
|{{flag|Suriname}}
|SRD 520 million
|[[Finance:Renminbi|¥]] 1 billion<ref>{{Cite web|title =  |url = http://www.pbc.gov.cn/publish/english/955/2015/20150327091110082870833/20150327091110082870833_.html|website = pbc.gov.cn|access-date = 2015-05-27}}</ref>
|-
|10 April 2015
|{{flag|South Africa }}
|[[Finance:South African rand|ZAR]] 54 billion
|[[Finance:Renminbi|¥]] 30 billion<ref>{{Cite news|url = http://www.pbc.gov.cn/publish/goutongjiaoliu/524/2015/20150410163415144827127/20150410163415144827127_.html|title = China, South Africa sign currency swap deal (Chinese)|date = 2015-04-10}}</ref>
|-
|25 May 2015
|{{flag|Chile }}
|CLP 2.2 trillion
|[[Finance:Renminbi|¥]] 22 billion<ref>{{Cite news|url = https://news.yahoo.com/china-chile-sign-currency-swap-agreement-221303419.html|title = China and Chile sign currency swap agreement|agency = Associated Press|access-date = 25 May 2015|via = Yahoo News}}</ref>
|-
|5 September 2015
|{{flag|Tajikistan }}
|TJS 3.2 billion
|[[Finance:Renminbi|¥]] 3.2 billion<ref name="europe.chinadaily.com.cn">{{Cite news|url = http://europe.chinadaily.com.cn/business/2015-09/05/content_21791172.htm|title = Tajikistan, China sign currency swap deal|agency = Associated Press|access-date = 5 September 2015|via = China Daily}}</ref>
|-
|5 December 2019
|{{flag|Macau}}
|[[Finance:Macanese pataca|MOP]] 35 billion
|[[Finance:Renminbi|¥]] 30 billion<ref name="europe.chinadaily.com.cn"/>
|-
|20 November 2023
|{{flag|Saudi Arabia}}
|SAR 26 billion
|[[Finance:Renminbi|¥]] 50 billion<ref name="europe.chinadaily.com.cn"/>
|-
| Total (excluding Nepal)
| 
| 
| [[Finance:Renminbi|¥]]3,164 billion 
|}

== List of RQFII program licences and quotas ==
{| class="wikitable" style="text-align:center;"
|-
! Date       
! Country
! Quota ceiling <br />(CNY)
|-
| 16 December 2011
| Hong Kong
| 20 billion
|-
| 9 April 2012
| Hong Kong
| 70 billion
|-
| 13 November 2012
| Hong Kong
| 270 billion
|-
| 15 October 2013 
| United Kingdom
| 80 billion
|-
| 22 October 2013 
| Singapore
| 50 billion
|-
| 28 March 2014 
| France
| 80 billion
|-
| 3 July 2014
| South Korea
| 80 billion<ref>{{Cite web|title = New Progress in China-Korea Financial Cooperation|url = http://www.pbc.gov.cn/english/130721/2971373/index.html|website = pbc.gov.cn|access-date = 2016-01-18}}</ref>
|-
| 7 July 2014
| Germany
| 80 billion<ref name=":6">{{Cite journal|url = https://research.standardchartered.com/configuration/ROW%20Documents/Offshore_Renminbi_bonds_%E2%80%93_H2-2014_outlook_[Correction]_19_08_14_03_10.pdf|title = Offshore Renminbi bonds – H2-2014 outlook|last = Liu|first = Becky|date = 19 August 2014|journal = Standard Chartered Global Research|access-date = 21 August 2014}}</ref>
|-
| 3 November 2014
| Qatar
| 30 billion
|-
| 8 November 2014
| Canada
| 50 billion
|-
| 17 November 2014
| Australia
| 50 billion<ref name=":7">{{Cite news|url = http://www.rba.gov.au/media-releases/2014/mr-14-20.html|title = New Measures to Facilitate the Development of the Renminbi Market in Australia|last = RBA's Media Office|date = 17 November 2014|work = The Reserve Bank of Australia|access-date = 21 January 2015}}</ref>
|-
| 21 January 2015
| Switzerland
| 50 billion
|-
| 29 April 2015
| Luxembourg
| 50 billion<ref>{{Cite web|title =  |url = http://www.pbc.gov.cn/publish/english/955/2015/20150505105813032379772/20150505105813032379772_.html|website = pbc.gov.cn|access-date = 2015-05-27}}</ref>
|-
| 25 May 2015
| Chile
| 50 billion<ref>{{Cite news|title = China Extends Yuan Clearing Network, RQFII Program to Chile|url = https://www.bloomberg.com/news/articles/2015-05-26/china-extends-yuan-clearing-network-rqfii-program-to-chile|publisher = Bloomberg L.P.|access-date = 2015-05-27|first = Fion|last = Li| newspaper=Bloomberg.com | date=26 May 2015 }}</ref>
|-
| 27 June 2015
| Hungary
| 50 billion<ref>{{Cite web|url = http://www.pbc.gov.cn/publish/english/955/2015/20150701105937642761407/20150701105937642761407_.html|title = Fresh Progress in China-Hungary Bilateral Financial Cooperation|date = 2015-07-01|access-date = 2015-07-31|website = The People's Bank of China}}</ref>
|-
| 31 October 2015
| South Korea
| Raised to 120 billion
|-
| 17 November 2015
| Singapore
|Raised to 100 billion
|-
| 23 November 2015
| Malaysia
| 50 billion
|-
| 14 December 2015
| UAE
| 50 billion
|-
| 17 December 2015
| Thailand<ref>{{Cite news|title = China gives Thailand 50bn yuan RQFII quota|url = http://www.bangkokpost.com/business/news/797948/china-gives-thailand-50bn-yuan-rqfii-quota|website = Bangkok Post|access-date = 2015-12-21}}</ref>
| 50 billion
|-
| 7 June 2016
| United States
| 250 billion<ref>{{Cite web|title = China Gives First Investment Quota to U.S. to Boost Yuan Use|url = https://www.bloomberg.com/news/articles/2016-06-07/china-to-give-38-billion-rqfii-quota-to-u-s-in-first-ever-move|publisher = Bloomberg L.P.|access-date = 2015-06-08}}</ref>
|-
| 21 December 2016
| Ireland
| 50 billion<ref>{{Cite web|title = Statement: Allocation of Renminbi Qualified Foreign Institutional Investors (RQFII) Quota to Ireland |url = https://www.centralbank.ie/news-media/press-releases/statement-allocation-of-renminbi-qualified-foreign-institutional-investors-(rqfii)-quota-to-ireland}}</ref>
|-
| 
| Total
| 1,510 billion
|}

== List of RMB Offshore Clearing Bank ==
{|class="wikitable" style="text-align:center;"
|-
! Appointed 
Date       
! Country
! Clearing Bank 
! Clearing hour  
(GMT)
|-
| 24 December 2003
| {{Flag|Hong Kong}}  
| BoC, Hong Kong<ref>{{Cite news|url = http://www.pbc.gov.cn/publish/english/955/1986/19868/19868_.html|title = People's Bank of China Announcement No. 20 of 2003|date = 24 December 2014|work = The People's Bank of China, News|access-date = 22 August 2014}}</ref> 
| 00:30-21:00<ref>{{Cite news|url = http://www.fxweek.com/fx-week/news/2359740/bank-of-china-extends-rmb-clearing-services-to-london-hours|title = Bank of China extends RMB clearing to London hours|last = Mataro|first = Elena|date = 12 August 2014|work = FX-Week|access-date = 25 August 2014}}</ref>
|-
| September 2004
| {{Flag|Macau}}
| BoC, Macau branch<ref>{{Cite news|url = http://www.pbc.gov.cn/publish/english/955/1991/19915/19915_.html|title = People's Bank of China Announcement No.8 of 2004|date = 6 August 2004|work = PBC, News|access-date = 22 August 2014}}</ref>
| 
|-
| 11 December 2012  
| {{Flag|Taiwan}}
| BoC, Taipei branch<ref>{{Cite news|url = http://www.boc.cn/en/bocinfo/bi1/201212/t20121218_2095987.html|title = Bank of China Taipei Branch Authorized as RMB Clearing Bank in Taiwan|date = 12 December 2012|work = BOC News|access-date = 22 August 2014}}</ref>
| 
|-
| 8 February 2013
| {{Flag|Singapore}}
| ICBC, Singapore branch<ref>{{Cite news|url = http://www.mas.gov.sg/singapore-financial-centre/overview/regional-gateway-for-rmb.aspx|title = Regional Gateway for RMB|date = 27 March 2014|work = Monetary Authority of Singapore|access-date = 22 August 2014}}</ref>  
| 
|-
| 18 June 2014 
| {{Flag|UK}} 
| CCB, London branch<ref>{{Cite news|url = https://www.gov.uk/government/news/chancellor-welcomes-london-renminbi-clearing-bank|title = First renminbi clearing bank outside Asia appointed in London|date = 18 June 2014|work = GOV.UK, News story|access-date = 22 August 2014}}</ref>
| 
|-
| 19 June 2014
| {{Flag|Germany}}
| BoC, Frankfurt branch<ref>{{Cite news|url = https://www.bloomberg.com/news/2014-06-19/bank-of-china-wins-the-first-yuan-clearing-deal-in-the-euro-area.html|title = Bank of China Wins First Yuan Clearing Deal in Euro Area|last = Zha|first = Weixin|date = 19 June 2014|work = Bloomberg|access-date = 22 August 2014}}</ref>
| 
|-
| 4 July 2014
| {{flag|South Korea}} 
| BoCom, Seoul branch<ref>{{Cite news|url = https://www.bloomberg.com/news/2014-07-04/bank-of-communications-wins-first-yuan-clearing-mandate-in-seoul.html|title = Bank of Communications Wins First Yuan Clearing Mandate in Seoul|last = Li|first = Fion|date = 4 July 2014|work = Bloomberg|access-date = 22 August 2014}}</ref>
| 
|-
| 15 September 2014
| {{flag|France}} 
| BoC, Paris Branch<ref>{{Cite news|url = http://news.xinhuanet.com/english/china/2014-09/15/c_133644738.htm|archive-url = https://web.archive.org/web/20140920093024/http://news.xinhuanet.com/english/china/2014-09/15/c_133644738.htm|url-status = dead|archive-date = 20 September 2014|title = BOC becomes RMB clearing bank in Paris|date = 15 September 2014|work = Xinhua News|access-date = 16 September 2014}}</ref>
| 
|-
| 16 September 2014
| {{Flag|Luxembourg}} 
| ICBC, Luxembourg<ref>{{Cite news|url = http://www.chinadaily.com.cn/bizchina/2014-09/16/content_18609055.htm|title = ICBC becomes renminbi clearing bank in Luxembourg|last = Liu|first = Cecily|date = 16 September 2014|work = China Daily|access-date = 17 September 2014}}</ref>
| 
|-
| 3 November 2014
| {{Flag|Qatar}} 
| ICBC, Doha
| 
|-
| 8 November 2014
| {{Flag|Canada}} 
| ICBC, Toronto<ref>{{Cite news|url = https://online.wsj.com/articles/china-names-icbc-for-yuan-clearing-in-canada-1415525669|title = China Names ICBC for Yuan Clearing in Canada|last =william.kazer@wsj.com |date = 9 November 2014|work = The Wall Street Journal|access-date = 11 November 2014}}</ref>
| 
|-
|17 November 2014
|{{Flag|Australia}}
|BoC, Sydney<ref>{{Cite news|url = https://www.bloomberg.com/news/2014-11-18/bank-of-china-named-sydney-yuan-clearing-bank-signs-asx-accord.html|title = Bank of China Named Sydney Yuan Clearing Bank, Signs ASX Accord|last = Purvis|first = Benjamin|date = 19 November 2014|work = Bloomberg|access-date = 21 January 2015}}</ref>
|
|-
|6 January 2015
|{{Flag|Thailand}}
|ICBC, Bangkok<ref>{{Cite news|title = แบงก์ชาติจีนดันตั้ง "ไอซีบีซี" รับเคลียริ่งเงินหยวนในไทย|date = 7 January 2015|work = Krungthep Turakij newspaper}}</ref>
|
|-
|6 January 2015
|{{Flag|Malaysia}}
|BoC, Malaysia<ref name=":8">{{Cite news|url = http://www.theborneopost.com/2015/01/06/bank-of-china-malaysia-appointed-clearing-bank-for-rmb-business-in-malaysia/|title = Bank of China (Malaysia) appointed clearing bank for RMB business in Malaysia|date = 6 January 2015|work = Borneo Post|access-date = 21 January 2015}}</ref>
|
|-
|25 May 2015
|{{flag|Chile }}
|CCB, Santiago
|
|-
|28 June 2015
|{{flag|Hungary}}
|BoC, Budapest<ref>{{Cite web|url=http://english.gov.cn/news/international_exchanges/2015/06/28/content_281475136245640.htm|title=BOC authorized as RMB clearing bank in Hungary|date=28 June 2015|website=English.gov.cn|access-date=24 July 2017}}</ref>
|
|-
|9 July 2015
|{{flag|South Africa}}
|BoC, Johannesburg<ref>{{Cite web|url=http://www.chinaknowledge.com/Newswires/NewsDetail.aspx?type=1&cat=INS&NewsID=62419|title=BOC's Johannesburg branch becomes RMB clearing bank in South Africa|website=China Knowledge|access-date=21 September 2016}}</ref>
|
|-
|17 September 2015
|{{flag|Argentina}}
|ICBC, Buenos Aires<ref>{{Cite web|url=http://www.icbc.com.cn/icbc/newsupdates/icbc%20news/ICBCArgentinaOfficiallyLaunchesRMBClearingBusiness.htm|title=ICBC (Argentina) Officially Launches RMB Clearing Business|publisher=ICBC|access-date=21 September 2016|archive-date=12 August 2016|archive-url=https://web.archive.org/web/20160812020717/http://www.icbc.com.cn/icbc/newsupdates/icbc%20news/ICBCArgentinaOfficiallyLaunchesRMBClearingBusiness.htm|url-status=dead}}</ref>
|
|-
|30 September 2015
|{{flag|Zambia}}
|BoC, Lusaka<ref>{{Cite news|url=https://www.reuters.com/article/ozabs-uk-china-zambia-yuan-idAFKCN0RU0ME20150930|title=China names Bank of China as yuan clearing bank in Zambia|work=Reuters|date=30 September 2015|access-date=21 September 2016}}</ref>
|
|-
|30 November 2015
|{{flag|Switzerland}}
|CCB, Zurich<ref>{{Cite web|url=http://www.snb.ch/en/mmr/reference/pre_20151130/source/pre_20151130.en.pdf|title=Renminbi clearing services now available in Switzerland|date=30 November 2015|publisher=SNB BNS|access-date=21 September 2016}}</ref>
|
|-
|21 September 2016
|{{flag|USA}}
|BoC, NYC<ref>{{cite news | title=Daily Wrap: PBoC RMB Clearing, Coal Output Boost | work=Red Pulse (China Market Intelligence) | date=22 September 2016}}</ref>
|
|-
|September 2016
|{{flag|Russia}}
|ICBC, Moscow
|
|-
|December 2016
|{{flag|UAE}}
|ABC, Dubai
|
|}
The accumulated RMB clearing amount has reached 40 trn yuan, grew 1300% from 2013 to 2014.

'''Proposed Clearing Hubs'''
{| class="wikitable" style="text-align:center;"
|-
!colspan="3" style="background: #ffdead;" |Asia-Oceania
|-
! Country
! City
! Status

|-
| {{flag|Australia}}
| [[Place:Sydney|Sydney]]
| Ongoing negotiations<ref>{{cite web|title=China and Australia Announce Direct Currency Trading|url=http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2013/044.htm&pageID=&min=wms&Year=&DocType=0|quote=Direct trading between the two currencies will commence on the [[Organization:China Foreign Exchange Trade System|China Foreign Exchange Trade System]] (CFETS) and the Australian foreign exchange market on 10 April 2013.|publisher=Department of the Treasury (Australia)|access-date=22 October 2013|archive-url=https://web.archive.org/web/20131023060028/http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases%2F2013%2F044.htm&pageID=&min=wms&Year=&DocType=0|archive-date=23 October 2013|url-status=dead}}</ref>   
|-
|-
| {{flag|United Arab Emirates}}
| Dubai
| {{partial|Ongoing negotiations}}<ref>{{cite news|last=Tom Arnold|title=Dubai gains support as centre for Chinese yuan trading |url=http://www.thenational.ae/business/banking/dubai-gains-support-as-centre-for-chinese-yuan-trading|newspaper=The National (Abu Dhabi)|access-date=22 October 2013}}</ref> 
|-
!colspan="3" style="background: #ffdead;" |Africa
|-
! Country
! City
! Status
|-
| {{flag|Kenya}}
| [[Place:Nairobi|Nairobi]]
| {{partial|Ongoing negotiations}}<ref>{{cite web|last=Daniel Finnan|title=Kenya keen to host Chinese yuan currency clearing house|date=23 September 2013|url=http://www.english.rfi.fr/africa/20130923-kenya-chinese-yuan|publisher=Radio France Internationale|access-date=22 October 2013}}</ref> 
|-
!colspan="3" style="background: #ffdead;" |Europe
|-
! Country
! City
! Status
|-
| {{flag|France}}<ref>{{Cite web|url = http://www.pbc.gov.cn/publish/english/955/2014/20140630103904004382036/20140630103904004382036_.html|title = Signature of a Memorandum of Understanding between People's Bank of China and Banque de France on RMB Clearing Arrangements|date = 30 June 2014|access-date = 23 July 2014|publisher = PBC}}</ref>
| [[Place:Paris|Paris]]
| {{partial|MOU signed 28-Jun-14}}
|-
| {{flag|Switzerland}}
| [[Place:Zürich|Zürich]]
| {{partial|Ongoing negotiations}}<ref>{{cite news|author1=Corinne Gretler |author2=Catherine Bosley |title=Swiss Banks Push for Zurich to Become Yuan Offshore Trading Hub|url=https://www.bloomberg.com/news/2013-07-05/swiss-banks-push-for-zurich-to-become-yuan-offshore-trading-hub.html|publisher={{wipe|Bloomberg News}}|access-date=22 October 2013}}</ref>
|- 
!colspan="3" style="background: #ffdead;" |North America
|-
! Country
! City
! Status
|-
| {{flag|United States}}
| {{wipe|San Francisco}}
| {{partial|Ongoing negotiations}}<ref>{{cite news|last=Andrew S. Ross|title=SF seeks to be hub for Chinese currency|url=http://www.sfgate.com/business/bottomline/article/SF-seeks-to-be-hub-for-Chinese-currency-4284909.php|newspaper=San Francisco Chronicle|access-date=22 October 2013|date=17 February 2013}}</ref> 
|}

== Renminbi hubs outside China ==

=== Australia ===
China is Australia's largest trading partner (AUD 120 billion in 2013) and in March 2012, the Reserve Bank of Australia (RBA) signed the 3-year RMB Bilateral Swap Agreement with the PBoC worth RMB200bn.

18 February 2014, the Australian Securities Exchange Limited ("ASX") and BoC signed an agreement for clearing and settlement in RMB (in Australia). In April, the RBA announced that it would invest up to 5% of its foreign reserves in RMB Sovereign bond.<ref>{{Cite web|url = http://www.cifr.edu.au/assets/document/Chi-wah%20Chung.pdf|title = Renminbi Internationalisation|date = March 2014|access-date = 21 January 2015|website = Centre for International Finance and Regulation (CIFR)|last = Chung|first = Chi-wah|archive-date = 21 January 2015|archive-url = https://web.archive.org/web/20150121053229/http://www.cifr.edu.au/assets/document/Chi-wah%20Chung.pdf|url-status = dead}}</ref> On 17 November, RBA and PBoC signed an MOU to established official RMB Clearing arrangements in Australia and PBoC granted RMB 50bn RQFII quota to Australia, which will allow approved Australian domiciled FI to invest in China's domestic bond and equity markets using RMB.<ref name=":7" />

=== Canada ===
On 8 November 2014, Canada became the first country in the Americas to sign a reciprocal currency deal with China, enabling direct business between the Canadian dollar and the Chinese yuan.<ref name="The Canadian Press Posted: Nov 08, 2014">{{cite news|agency=The Canadian Press |publisher =CBC News |title=Canada, China sign currency deal aimed at boosting trade|url=http://www.cbc.ca/news/politics/canada-china-sign-currency-deal-aimed-at-boosting-trade-1.2828707|access-date=8 November 2014}}</ref>

=== Germany (BoC) ===
On 19 June 2014, Based on the MoU signed by the People's Bank of China and the Bundesbank, the PBoC has authorized the Frankfurt Branch of Bank of China to serve as the RMB clearing bank in Frankfurt.<ref>{{Cite web|url = http://www.pbc.gov.cn/publish/english/955/2014/20140630152824765992284/20140630152824765992284_.html|title = The PBC Announcement [2014] No.12|date = 27 June 2014|access-date = 23 July 2014|publisher = PBC}}</ref> China is EU's No. 1 supplier of goods and its third largest export market. Eu-China annual trade could grow 1.5 times in a decade's time (to EUR 660bn). Germany is China's largest trading partner in the EU (EUR 138.6bn in 2013), which accounted for 45% of EU's exports to China and 28% of EU's imports from China. The RMB was used for 29% in the eurozone (and 38% of non-eurozone Europe's) from 19% a year earlier. The volume of RMB deposit has climbed to 100bn at end-2013.<ref>{{Cite journal|url = http://www.dbresearch.de/MAIL/DBR_INTERNET_DE-PROD/PROD0000000000339508.pdf|title = China-EU relations: Gearing up for growth|last = Hanskul|first = Syetam|date = 31 July 2014|journal = Deutsche Bank Research|access-date = 14 October 2014}}</ref>

=== Hong Kong and Macau (BoC) ===
Since 2010 CNH deposit has grown 12 times from RMB 90 bn to 1,125 bn by 1H2014 while Trade Settlement handled by Hong Kong Banks and CNH Bond outstanding increases 107 times (RMB 27 bn to 2,926 bn) and 12 times (RMB 30 bn to 384 bn) respectively.<ref>{{Cite web|url = http://www.hkma.gov.hk/media/eng/doc/key-information/speeches/20140915e1a1.pdf|title = What does it take to develop a Global Offshore RMB Hub?|date = 15 September 2014|access-date = 17 September 2014|website = 2014 Treasury Markets Summit, Hong Kong Monetary Authority|publisher = Hong Kong Monetary Authority|last = Chan|first = Norman T.L.}}</ref> As of 2014, Hong Kong is still the largest offshore RMB (CNH) hubs outside of mainland China. On 10 April, CSRC and Hong Kong's SFC jointly announced Shanghai-Hong Kong Stock Connect (SHKSC) pilot programme – which allows Hong Kong investors to buy Shanghai-listed A-shares and vice versa – is scheduled to start operation on 13 October 2014 with the quota for inward investments in A-shares by Hong Kong residents of CNY 300bn<ref name=":6" /> (the actual opening was on 17 November where the daily limited was reached, mainly from the Northbound trade, after market opened less than 5 hours).

=== London (CCB) ===
In 2013, London accounted for over 60% percent of all renminbi-denominated trade activity outside Chinese territory,<ref name="govukosborne">{{cite web|title=Groundbreaking deal set to make London global currency centre for investment in China|date=15 October 2013 |url=https://www.gov.uk/government/news/groundbreaking-deal-set-to-make-london-global-currency-centre-for-investment-in-china|publisher=Government of the United Kingdom|access-date=22 October 2013}}</ref> with daily volume rising to £3.1 billion.<ref>{{cite news|last=Tania Branigan|title=Boost for London as China agrees to loosen yuan investment rules|url=https://www.theguardian.com/business/2013/oct/15/london-china-investment-rules-yuan|newspaper={{wipe|The Guardian}}|access-date=22 October 2013}}</ref>

On 18 June 2014, PBoC appointed China Construction Bank (London) to serve as the RMB Clearing Bank in London.<ref>{{Cite web|url = http://www.pbc.gov.cn/publish/english/955/2014/20140630152117110308522/20140630152117110308522_.html|title = The PBC Announcement [2014] No.11|date = 27 June 2014|access-date = 23 July 2014|publisher = PBC}}</ref> The UK leads Europe with 123.6% growth in RMB payment between July 2013 to July 2014.<ref>{{Cite news|url = http://www.swift.com/assets/swift_com/documents/products_services/RMB_tracker_Aug2014_SdC.pdf|title = European hubs are fuelling RMB Internationalisation|date = 25 August 2014|work = SWIFT|access-date = 29 September 2014|archive-date = 6 October 2014|archive-url = https://web.archive.org/web/20141006073437/http://www.swift.com/assets/swift_com/documents/products_services/RMB_tracker_Aug2014_SdC.pdf|url-status = dead}}</ref>

in 2018, London came 2nd (after Hong Kong, 79.05%) is RMB settlement (5.17%) through SWIFT, followed by Singapore, US and Taiwan. However London topped the list (36.07%) in term of FX transactions in RMB (inter-bank transactions based on MT300), followed by Hong Kong (29.61%)

=== Luxembourg ===
In May 2011, the first Dim sum bond issued by a European company outside Greater China was listed on the Luxembourg Stock Exchange.<ref>{{Cite web|url=http://shanghai.mae.lu/en/Actualites/RMB-Business-in-Luxembourg|title=MAE - RMB Business in Luxembourg / Actualités / Shanghai / Mini-Sites}}</ref>

In the first quarter of 2014, Luxembourg confirmed its position as the number one in renminbi business in Europe and the third worldwide. RMB deposits increased by 24% to ¥79.4bn compared to 2013 year's end.<ref>http://www.pwc.lu/en/china/docs/pwc-where-do-you-renminbi.pdf {{Bare URL PDF|date=March 2022}}</ref>

In May 2014, the first Dim Sum bond issued by a Chinese entity in the Eurozone was listed at the Luxembourg Stock Exchange, the so-called Schengen bond.<ref>{{cite web |url=http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140514000004&cid=1203 |title=Bank of China to list RMB bond on Luxembourg Stock Exchange｜Finance｜Business｜WantChinaTimes.com |access-date=2014-06-13 |url-status=dead |archive-url=https://web.archive.org/web/20141018090539/http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140514000004&cid=1203 |archive-date=18 October 2014}}</ref>

Luxembourg is the largest RMB securities settlement centre and leading place for RMB denominated bonds in Europe with RMB 79bn in deposits and over RMB 261 bn in investment funds registered.<ref>{{Cite web|url = http://www.rmb-business.com/en/rmb-in-luxembourg/overview|title = Overview of Cross-Border Renminbi Activities|year = 2014|access-date = 17 September 2014|website = Luxembourg for Finance}}</ref>

=== Malaysia ===
In October 2011, Khazanah Nasional Bhd issued the first ever offshore RMB denominated sukuk, raising RMB500m .

In July 2014, SWIFT ranked Malaysia as top ten offshore RMB centres. Its RMB trade settlement volume as tripled since 2010 to RMB3bn (in 2013) while RMB deposit to (10.7bn) and FX volume ($580m per day) increased more than ten and fifteenfold since 2010 respectively. As of mid-2014, Malaysian firm's RMB Bond issuance reached RMB4.4bn.<ref name=":8" />

On 5 January 2015, PBoC designated Bank of China (Malaysia) as the yuan Clearing Bank in Malaysia.

=== Moscow ===
On 15 December 2010, the [[Company:Moscow Interbank Currency Exchange|Moscow Interbank Currency Exchange]] (MICEX) became the first regulated market to trade the renminbi outside China, with a relatively modest first session turnover of ¥4.9 million, or 22.8 million roubles, after one hour of trading.<ref>{{cite web|last=Oleg Nikishenkov|title=Betting on the yuan|url=http://themoscownews.com/business/20101220/188295842.html|publisher=The Moscow News|date=20 December 2010|access-date=22 October 2013|archive-date=23 October 2013|archive-url=https://web.archive.org/web/20131023062237/http://themoscownews.com/business/20101220/188295842.html|url-status=dead}}</ref>

In 2011, MICEX was incorporated into the [[Company:Moscow Exchange|Moscow Exchange]] where the renminbi continued to trade against the ruble. In 2012, the volume of renminbi traded increased by 70% compared to the previous year.<ref>{{cite web|title=New trading record on the Moscow Exchange's FX market|url=http://rts.micex.ru/n3293/?nt=201|publisher=[[Company:Moscow Exchange|Moscow Exchange]]|access-date=22 October 2013}}</ref>

From April to June 2013, the average daily value of renminbi traded on the Moscow Exchange grew nearly fourfold, surpassing ¥30 million for the first time. On 3 July 2013, it reached an all-time high of ¥55.2 million.<ref>{{cite web|title=New record of the Moscow Exchange's FX market|url=http://rts.micex.ru/n3510|publisher=[[Company:Moscow Exchange|Moscow Exchange]]|access-date=22 October 2013}}</ref>

=== Paris ===
In 2013, renminbi-denominated deposits in Paris amounted to ¥10 billion, making it the second largest pool of Chinese currency in Europe after London.<ref>{{cite news|title=France plans currency swap line with China: paper|url=https://www.reuters.com/article/us-china-france-currency-idUSBRE93C01S20130413|work={{wipe|Reuters}}|access-date=22 October 2013|quote=Yuan deposits in Paris amount to 10 billion yuan ($1.6 billion), making it the second largest pool for the Chinese currency in Europe after London. Almost 10 percent of Sino-French trade is settled in yuan, also called the renminbi or RMB, according to French data cited by the official newspaper.|date=13 April 2013}}</ref>

=== Singapore (ICBC) ===
[[File:Downtown Core Singapore March 2011 (Landscape).jpg|thumb|In 2013, the [[Earth:City-state|city-state]] of Singapore became the world's 3rd largest foreign exchange (FX) hub, lagging behind only the United Kingdom and the United States<ref>{{cite news|title=Singapore Overtakes Japan as Asia's Top Foreign-Exchange Hub|url=https://www.bloomberg.com/news/2013-09-05/singapore-overtakes-japan-as-asia-s-biggest-foreign-exchange-hub.html|publisher={{wipe|Bloomberg News}}|access-date=22 October 2013}}</ref> In October that year, plans for the Singapore Dollar to trade directly against the renminbi were finalized.<ref name="massg">{{cite web|title=New Initiatives to Strengthen China-Singapore Financial Cooperation|url=http://www.mas.gov.sg/news-and-publications/press-releases/2013/new-initiatives-to-strengthen-china-singapore-financial-cooperation.aspx|publisher=Monetary Authority of Singapore|access-date=22 October 2013}}</ref>]]

According to the Monetary Authority of Singapore (MAS), the usage of the renminbi in Singapore has increased by 40% since 2012, with total renminbi-denominated deposits valued at more than ¥140 billion.<ref>{{cite web|title=Use of China currency up 40% in Singapore |url=http://www.channelnewsasia.com/news/business/singapore/use-of-china-currency-up/821142.html |publisher=Channel NewsAsia |access-date=22 October 2013 |archive-url=https://web.archive.org/web/20131024174129/http://www.channelnewsasia.com/news/business/singapore/use-of-china-currency-up/821142.html |archive-date=24 October 2013 |url-status=dead}}</ref>

On 7 February 2013, PBoC designated ICBC (Singapore) as the yuan Clearing Bank in Singapore.<ref>{{Cite web|url = http://thechinatimes.com/online/2013/02/6605.html|title = ICBC appointed as yuan clearing bank in Singapore|date = 8 February 2013|access-date = 23 July 2014|work = The China Times}}</ref>

On 7 March 2013, PBoC renew the 3-year BSA with MAS and double the facility to ¥150bn (30 billion Singapore dollars)<ref>{{Cite web|url = http://www.pbc.gov.cn/publish/english/955/2013/20130313140427964275661/20130313140427964275661_.html|title = People's Bank of China and Monetary Authority of Singapore Signed a New Bilateral Currency Swap Agreement to Double the Size of Swap Facility|date = 13 March 2013|access-date = 23 July 2014|publisher = PBC}}</ref>

In June 2014, PBoC and MAS jointly announced the Suzhou Industrial Park (SIP) initiative, which clearly suggested China's recognition of Singapore as an offshore Yuan center following Hong Kong (with Qianhai) and Taiwan (with Kunshan).<ref>{{Cite news|title = OCBC China Insights, Singapore-China SIP initiative marks another milestone for RMB internationalization|date = 13 June 2014|work = OCBC Treasury Research}}</ref>

On 28 October 2014 direct currency trading started between the Singapore dollar and the renminbi (CNY/SGD).<ref>{{cite web|title=Singapore and China Further Strengthen Financial Cooperation Through New Initiatives|url=http://www.mas.gov.sg/News-and-Publications/Media-Releases/2014/Singapore-and-China-further-strengthen-financial-cooperation-through-new-initiatives.aspx|publisher=Monetary Authority of Singapore|access-date=30 October 2014}}</ref> The Singapore dollar was added to the [[Organization:China Foreign Exchange Trade System|China Foreign Exchange Trade System]] (CFETS)'s platform, which as of 28 October 2014 offers financial operations and transactions between the yuan and ten foreign currencies.<ref>{{cite web|title=China, Singapore Start Direct Currency Trading|url=http://wbponline.com/Articles/View/37606/china-singapore-start-direct-currency-trading|access-date=30 October 2014}}</ref>

=== South Korea (BoCOM) ===
On 4 July 2014, PBoC appointed Bank of Communication (Seoul) as the RMB Clearing Bank in South Korea.<ref>{{Cite web|url = http://www.chinamoneynetwork.com/2014/07/05/china-plants-rmb-clearing-banks-around-the-world|title = China Plants RMB Clearing Banks Around The World|date = 5 July 2014|access-date = 23 July 2014|publisher = China Money Network|last = Liu|first = Li-Gang}}</ref>

=== Switzerland ===
On 21 July 2014, the People's Bank of China and the Swiss National Bank had signed a bilateral currency swap agreement.<ref name="FT20140721">{{cite news|author1=James Shotter |author2=Gabriel Wildau |title=China and Switzerland sign bilateral currency swap line|url=http://www.ft.com/cms/s/0/d79001d8-10b8-11e4-812b-00144feabdc0.html|newspaper=[[Social:Financial Times|Financial Times Limited]]|access-date=21 July 2014}}</ref>

=== Taiwan (BoC) ===
On 11 December 2012, PBoC authorized Bank of China (Taipei) to serve as RMB Clearing Bank in Taiwan.<ref>{{Cite web|url = http://www.pbc.gov.cn/publish/english/955/2013/20130314105541578282714/20130314105541578282714_.html|title = Highlights of China's Monetary Policy in 2012|date = 25 February 2013|access-date = 23 July 2014|publisher = PBC}}</ref> The CNH deposit in Taiwan at RMB 301bn is second only to Hong Kong (945 bn) as of November 2014.

=== Tokyo ===
In 2012, direct transactions between the [[Finance:Japanese yen|Japanese yen]] and the renminbi began, with Sumitomo Mitsui Banking Corporation acting as the first major Japanese bank to accept deposits in renminbi.<ref>{{cite news|last=TOKUHIKO SAITO|title=SMBC first major bank to accept deposits in yuan|url=http://ajw.asahi.com/article/economy/business/AJ201207160001|newspaper=The Asahi Shimbun|access-date=22 October 2013|archive-date=23 October 2013|archive-url=https://web.archive.org/web/20131023055637/http://ajw.asahi.com/article/economy/business/AJ201207160001|url-status=dead}}</ref>

== List of foreign banks that trade renminbi  ==
*[[Company:BNP Paribas|BNP Paribas]]
*[[Company:HSBC|HSBC]]
*Standard Chartered Bank
*Credit Agricole CIB
*[[Company:Deutsche Bank|Deutsche Bank]]
*[[Company:Bank of America|Bank of America]]
*[[Company:Citigroup|Citigroup]]
*[[Company:Mitsubishi UFJ Financial Group|Mitsubishi UFJ Financial Group]]
*Japan Post Bank
*Bank of East Asia
*[[Company:Bank of Singapore|Bank of Singapore]]
*DBS Bank
*Busan Bank
*Daegu Bank
*KASIKORNBANK
*Bangkok Bank
*Siam Commercial Bank
*Bank of the Philippine Islands
*Malayan Banking Berhad
*Commonwealth Bank of Australia

== Criticism ==
The German news magazine ''Der Spiegel'' criticized Chinese moves towards attempting to establish the Yuan as a [[Finance:Reserve currency|reserve currency]] as unrealistic, as doing so would ultimately require removing capital controls, which China is reluctant to lift because they enable it to establish a favorable exchange rate.<ref>{{cite magazine|title=Exchange Rates and Reserve Currencies: China Plans Path to Economic Hegemony|url=http://www.spiegel.de/international/business/exchange-rates-and-reserve-currencies-china-plans-path-to-economic-hegemony-a-741303.html|magazine=Der Spiegel|access-date=22 October 2013}}</ref>

==Use in Zimbabwe==
The RMB was at one point one of the currencies legal tender in Zimbabwe's multiple currency system (2015-2019).


== See also ==
* List of countries by leading trade partners
* List of the largest trading partners of China
* [[Finance:Renminbi currency value|Renminbi currency value]]
* Monetary policy of China

== References ==
{{Reflist}}

[[Category:Currency]]
[[Category:International finance]]

{{Sourceattribution|Internationalization of the renminbi}}