China’s Yuan reaches 3% in global payments, the Central Bank says. On September 3, 2023, Jin Zhongxia spoke at China’s Annual Finance Forum.
He leads the International Department at China’s central bank. He said the financial sector needs to open up more.
At the same time, it has to stay stable. He noted that the global economy is shifting. This brings more market swings and tighter money flow.
Jin plans to update China’s financial openness policies. The goal is to improve the business environment.
On August 7, the State Council also issued new rules. These rules will help attract more foreign investment.
Jin stressed the need for better financial management.
Jin highlighted three main points. First, China has taken steps to open its financial market since 2018. Over 110 foreign banks and firms have set up in China.
Second, China has expanded its investment options. It has also improved risk management tools.
Last, the Chinese Yuan is gaining global status. It is now one of the world’s top five reserve currencies.
In July, the Yuan made up over 3% of global payments for the first time. Yuan use in global trade reached 24% by July.
Overseas assets in Yuan totaled 9.8 trillion Yuan by the end of June.
Reserve Currency
Jin Zhongxia discussed many issues in his speech. He mentioned that global economic conditions are changing.
This affects the availability of money. Financial markets are also more volatile. Some developed countries are experiencing financial risks.
Others are dealing with indirect impacts of higher interest rates.
Jin laid out the next steps for China’s central bank. They will focus on streamlining pre-access national treatment.
They will also work on a negative list approach. These steps aim to make the system more open and organized.