According to the latest report released by SWIFT, the “One Belt, One Road” initiative provides a major opportunity for Chinese and foreign banks to conduct business in countries along the route and become a promoter of RMB internationalization.One of the biggest highlights may be Africa. In the first quarter of this year, Africa's payments to all currencies increased by 27.76% compared with three years ago, but the amount of RMB payments increased by 123.01% over the same period.
The report points out that the Belt and Road Initiative is designed to improve trade routes between Asia, Africa and Europe, develop new infrastructure and promote bilateral trade, and increase China's global strategic impact.Although it remains to be seen whether these plans will achieve their goals, they have had an impact. According to the data of the General Administration of Customs of China, the import and export volume of China and the Belt and Road countries reached 16.8 trillion yuan in the first three quarters of last year, an increase of 13.2% year-on-year.
According to the report, the Belt and Road Initiative provides significant opportunities for Chinese and foreign banks that have already established operations in countries along the route. In 2014-18, among the countries in the Belt and Road, the number of Chinese banks and their subsidiaries connected to the SWIFT network increased by 31%. . Many of them are designed to serve state-owned enterprises and participate in the infrastructure projects of the Belt and Road.
In addition, the report said that in 2014-18, China and some of the “Silk Road Economic Belt” countries also increased their payments. For example, the payments in Hungary, Turkey and Uzbekistan increased by 242% and 35% respectively.
According to SWIFT's report, one of the biggest highlights may be Africa. The mutual importance of China and Africa can be seen in the development of the increase in the amount of commercial payments.In the first quarter of this year, compared with three years ago, all currency payments from China to Africa increased by 67.05%, while the use of RMB increased by 53.48% over the same period. Renminbi payments from Africa to China also rose, with the payment of all currencies increasing by 27.76% during the period, but the increase in RMB payments reached 123.01%.