Before opening new business in the free trade zone, we must first understand what cross-border RMB can do in corporate transactions.

The above-mentioned central bank official replied that RMB can do four things for enterprises under current account and capital account: first, trade settlement can play the role of RMB pricing settlement; Second, industrial investment can play the role of RMB trading medium; Third, securities investment can play the role of storing the value of RMB; Fourth, the financing business can play the role of RMB financing intermediary.

In terms of investment, if enterprises choose to invest in RMB when going abroad and then purchase in China, the exchange risk will be eliminated. In terms of financing, overseas issuance of Panda bonds, dim sum bonds, Bao Dao bonds and RMB loans enjoyed by enterprises in the Free Trade Zone all make it possible for enterprises to obtain funds at low prices abroad, and the domestic and foreign markets have formed an intercommunication pattern.

In order to make cross-border RMB business smoother, entrepreneurs also need to know how much RMB is accepted overseas. According to the above-mentioned central bank officials, from the perspective of settlement trading areas, more than 10 countries or regions have accepted RMB. From the main point of view, overseas recipients have developed from enterprises to local governments and then to the national/regional level. Among them, two overseas central banks or monetary authorities have bilateral currency swap agreements with the Bank of China.

According to the latest statistics of SWIFT global interbank financial telecommunication association, RMB is the seventh largest currency in the global payment currency market, but its market share is only%, the eighth largest in the global foreign exchange trading market and the second largest in the global trade financing market.