Hong Kong official: RMB internationalization will help the country strengthen its voice

Hong Kong official: RMB internationalization will help the country strengthen its voice Chan Ka-keung, Secretary for Financial Services and the Treasury of the Hong Kong SAR Government, said on the 29th that after the global financial crisis, China...

Chan Ka-keung, Secretary for Financial Services and the Treasury of the Hong Kong SAR Government, said on the 29th that after the global financial crisis, China and emerging markets in Asia have developed rapidly, and the center of gravity of the global economy is shifting from the West to the Asia-Pacific region. The international economic order is changing, and the internationalization of the RMB will help the country enhance its influence and voice around the world.

Chen Jiaqiang published an online article on the same day titled "Asian Joint "Roadshow" Sees Hong Kong and Shanghai Complementary Co-production", recalling the scene of full houses when he and Fang Xinghai, director of the Shanghai Municipal Financial Services Office, led a delegation to Indonesia and Malaysia to hold a joint roadshow on RMB internationalization from the 23rd to the 26th of this month.

Chen Jiaqiang said that from an economic point of view, using RMB for settlement can reduce the capital costs caused by using other currencies for settlement, risks caused by exchange rate fluctuations, and the high costs involved in the foreign exchange settlement process. In the long run, settlement in RMB can also further expand bilateral trade between China and other countries.

Chen Jiaqiang believes that among ASEAN countries, Indonesia and Malaysia have frequent bilateral trade with China and have great potential to develop the RMB settlement market. Of course, the process of changing from using other foreign currencies for pricing to using RMB for settlement is not simple. The market also needs a period of adjustment and adaptation, including gradually changing the business habits of most trading parties for payment and settlement in US dollars.

Chan Ka-keung said he hopes that with the expansion of RMB trade and the maturation of Hong Kong's RMB settlement mechanism, Hong Kong can provide better services to trading companies and investors in Southeast Asia.