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Myanmar Central Bank announces the listing of RMB as the official settlement currency

  • Author:Rita
  • Source:Sunny Worldwide
  • Release Date:2019-02-02
According to the reportJanuary 31st Previously, the renminbi and most of the world's currency exchanges had to go through the US dollar. Today, in order to avoid the dollar, more and more countries have reached an agreement with China to realize direct exchange of the two countries' currencies!

Myanmar Central Bank announces the listing of RMB as the official settlement currency

Bank of Myanmar lists RMB and JPY as settlement currency

Another great news came! According to Xinhua News Agency on the 30th, the Myanmar Central Bank issued a notice announcing the increase in the RMB and the Japanese Yen as the official settlement currency. The head of the Myanmar central bank said that after the RMB is included in the settlement currency, bilateral trade settlement payments between China and Myanmar will be more convenient.

This Myanmar Central Bank notice is No. 4 of 2019. According to the directive, the central bank allows the use of RMB and JPY for international payment and settlement. The Bank of Myanmar said it issued the directive to promote the development of international payment settlement and border trade in Myanmar. Banks that have obtained the Authorized Dealer-AD are allowed to use the RMB and JPY for international payments and settlement. At the same time, the Bank of Myanmar also reminded the above banks that banks can open RMB and Yen accounts to facilitate the development of international payment and settlement services, but it is not allowed to open RMB and Yen accounts for individuals or institutions.

Previously, the official settlement currency approved by the Myanmar government included the US dollar, the euro, the Singapore dollar, etc., and the official Chinese currency, which has an annual trade volume of US$6 billion with Myanmar, has not been recognized as the settlement currency. At the end of last year (2018), the Ministry of Commerce of Myanmar revealed that in order to trade Myanmar with Yunnan Province of China, the RMB can be used as a legal settlement currency, and the Ministry of Commerce has negotiated with ICBC.

For the central bank to open the renminbi as the official settlement currency, many merchants are very welcome, saying that the renminbi has become the official settlement currency of Myanmar, which makes the import and export trade between the two countries more convenient, and can avoid a large number of illegal exchange activities. "We no longer have to rely on border areas." Illegal exchange, but before we can only exchange RMB through underground money houses, and need to be converted into US dollars, one to two will have a lot of losses in the exchange. Now, legal exchange of RMB through the bank channel will be able to better promote trade." Trade trader said.

More and more countries like to settle in renminbi

China's Ministry of Commerce recently pointed out that China's foreign trade import and export growth in 2018 is rapid, and the total import volume may exceed 2 trillion US dollars. Based on this hot situation, more than 30 countries including Russia, South Korea, Canada, the United Kingdom, Japan and Singapore have signed currency swap agreements with China, and more than 60 countries or regions have already used the RMB as a reserve currency.

So many countries that are close to the renminbi are also hoping to use their huge trade market power to drive their own economies. With the promotion of currency swaps, the internationalization of the RMB will inevitably accelerate. HSBC expects that by 2020, half of China's foreign trade will be settled in RMB.

Compared with the accelerated internationalization of the renminbi, the dollar seems to be going downhill.

The latest published International Capital Flow Report (TIC) shows that central banks in Japan, Australia, Canada, India and other countries are selling US debt to varying degrees. India has reduced its holdings by 14.4 billion U.S. dollars since March 2018. Germany has also reduced its holdings by 11.5 billion U.S. dollars in half a year. Even Russia and Turkey are directly pursuing US stocks.

With the development strategy of China's Belt and Road, we have made friends all over the world. Now that the renminbi has become more and more international, more and more countries are trying to settle trade with renminbi!