RMB Settlement Rises to 18%, US Debt Down to $910B, Dollar Slides

01, The proportion of RMB payments rises to 18.1%

According to recent data provided by the central bank, the proportion of RMB in China's trade settlements has currently risen to 18.1%, up from only 14.7% last year. This further demonstrates the continuous enhancement of the RMB's status, with an increasing number of countries willing to use or accept RMB in their trade dealings with China.

Although the current proportion of RMB is only 18%, it does not mean that the remaining 80% are all in US dollars. Among the countries that engage in trade with China, there are also those who use other currencies for settlement, such as the euro, yen, or pound sterling. This also indirectly indicates the significant progress China has made in reducing its reliance on the US dollar.

The decrease in the proportion of US dollars is also related to the continuous decline of the United States' trade position with China. In the past, the United States was China's largest trading partner, but now it is only ranked third. Moreover, due to the continuous interest rate hikes in the United States and high domestic inflation, the purchasing power of the United States has gradually declined. In the trade data between China and the United States for the first 11 months of this year, China's exports to the United States only increased by 5.8%, far lower than those to ASEAN and the European Union.

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From these data, it is certain that the proportion of US dollar settlements will definitely decrease.

02, Multiple countries use RMB for settlement

At present, ASEAN is China's largest trading partner. This year, China's exports to ASEAN have significantly increased by 22.2%.Due to geographical convenience, China has currency swap agreements with several ASEAN countries. As a result, the proportion of bilateral trade settled in RMB is relatively high.

In some of these countries, the RMB is even a commonly used currency. Many friends have found that when traveling to Vietnam, some Vietnamese merchants are very happy to accept RMB.

Another populous country in Asia, India, is also willing to use RMB in certain situations.

In June of this year, when India purchased coal from Russia, it was paid in RMB. This not only indicates that India has a considerable amount of RMB and is willing to settle in RMB, but also shows that Russia has a high level of acceptance of RMB.

After Russia was excluded from the SWIFT payment system this year, the status of RMB was greatly enhanced. Russia's trade with China, especially in oil and gas exports, accepts China's settlement in RMB.

Another country in the Asia-Pacific region, Australia, is also becoming more willing to accept RMB settlement.

In July of this year, when Australia exported iron ore to China, it was paid in RMB.

03, RMB Settlement Order

At the beginning of this month, Saudi Arabia completed its first cross-border transaction settled in RMB with Yiwu, China, which also opened the prelude to China and Arab countries using RMB for trade settlement in the future.

China imports a large amount of bulk commodities from abroad every year, including crude oil, coal, etc., but in the past, bulk commodities were mainly settled in US dollars.However, according to the current agreements reached between China and Arab countries, future oil and gas trade will be settled in Renminbi. This great news, known as the "Renminbi Settlement Order," will inevitably further support the continuous strengthening of the Renminbi's position in the next three to five years.

In addition to the gradual reduction of the proportion of US dollars used in China's foreign trade, China is also continuously reducing the proportion of US debt in its foreign exchange reserves.

The latest data indicates that China's current holdings of US debt have been reduced to less than 910 billion.

It appears that China is making great strides in promoting the international status of the Renminbi.