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29 countries around the world use RMB for foreign trade settlement

Views: 53     Author: Site Editor     Publish Time: 2021-04-09      Origin: Site Inquire

Countries around the world should prevent the United States from "shearing wool" globally through currency releases and the devaluation of the dollar. Facing the irresponsible over-issuance of the U.S. dollar, countries should reduce their holdings of U.S. dollar assets and resist the U.S. dollar hegemony. It can be said that due to the continuous overdraft of U.S. dollar credit, many countries around the world have successively begun the process of "de-dollarization", and reducing the holding of U.S. dollars in foreign exchange reserves is also one of the methods.

 

The U.S. dollar's share of global foreign exchange reserves plummeted by 30%!

According to the latest report on April 1, the latest data released by the International Monetary Fund (IMF) shows that the share of the US dollar in global foreign exchange reserves in the fourth quarter of 2020 has fallen to its lowest level in nearly 25 years (1995). Specifically, the U.S. dollar accounted for 59% of foreign exchange reserves, which has fallen for three consecutive quarters. In contrast, between 1977 and 1991, U.S. dollar assets accounted for 85% of global foreign exchange reserves. In contrast, the decline has now reached about 30%.

Global foreign exchange reserves are assets held by central banks in different currencies. In this report, the proportion of non-US dollar currencies has increased, with the proportion of euros rising to 21.2%, the highest level since 2014. At the same time, the scale of renminbi reserves has continued to rise. Data show that the total foreign exchange reserves of RMB in the fourth quarter of last year was 267.52 billion U.S. dollars, and its share of global foreign exchange reserves rose to 2.25%, increasing for four consecutive quarters.


The foreign trade settlement in 29 countries around the world uses RMB!

Recently, my country and Iran signed a 25-year cooperation agreement, stipulating that the two sides' oil trade should be settled in RMB. After that, my country and the UAE reached more settlement agreements in local currency, and the two sides used RMB for settlement in oil trade. my country's use of RMB for settlement in trade with other countries is not only conducive to reducing the risk of being sanctioned by the United States, but also conducive to the internationalization of RMB.

In addition to Iran and the UAE, Russia currently uses RMB to settle oil trade. The proportion of Sino-Russian trade settled in US dollars has dropped from 90% in 2015 to less than 30% at present. In the future, local currency settlement will be expanded. In fact, this is "de-dollarization." In fact, when the status of the US dollar is "toddling", more and more countries have joined the trend of "de-dollarization". According to relevant media statistics, as of now, at least 53 countries including Germany, the United Kingdom, Japan, Vietnam, Singapore, and Canada have begun to decentralize the U.S. dollar in different ways. The main methods include expanding local currency settlement, reducing the use of U.S. dollar assets, and optimizing the structure of foreign exchange reserves. Increase gold reserves, etc.

It is worth mentioning that with the steady development of my country's import and export trade, various trading partners may also increase their holdings of RMB when conducting trade settlement with my country. Statistics show that 29 countries, including Russia, Iran, Turkey and Venezuela, have gradually switched to the use of RMB in trade settlement or investment.


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