Russian coal with a value of 172 million yuan, India uses RMB to pay!Expert: RMB internationalization is accelerating

On July 1, according to media reports, India ’s largest cement manufacturer Super Keke Group imported a number of Russian coal and used RMB for payment. It is reported that the value of these goods is about 172 million yuan.

According to the Economic Daily, before that, India tried to establish a trade mechanism to use the rupee -settle settlement, but it did not realize it. In contrast, China and Russia have a mature settlement payment system. The use of RMB settlement is a more convenient choice for India.

Xu Yang, chief economist of Hong Kong Zhongrui Fund, said in an interview with the reporter of "Daily Economic News" that European and American countries have forced the sanctions on Russia to use non -US currencies for transactions. The internationalization process of trading currency is accelerating.

India has increased significantly from Russia's total coal

Since February this year, the Russian -Ukraine conflict has exacerbated the already tense energy supply situation, allowing the world to face the current dependence on fossil fuel. As the price of coal continues to rise, a series of chain reactions have occurred in global trade. In response to the situation of coal shortage, many economies have begun to buy coal globally.

When other countries embarked on Russia coal and looked for new supply countries, the world's second largest coal consumer country India continued to buy Russian coal. India's import volume of more than 66%in March came from Russia. Doubled more.

Earlier, Kpler, a commodity market consulting agency, released data. In the first week of March alone, India imported 1.06 million tons of coke and power coal from Russia, a new high since the beginning of 2020.

India's thermal power generation accounts for 75%, and the consumption of coal exceeding 1 billion tons per year, of which the number of coal used in coal -fired power plants exceeds 3/4. Due to the rise in coal prices last year, the total number of coal imports in India was 211 million tons throughout the year, a decrease of 3.2%compared with 218 million tons in 2020.

At present, India has demanded that public utility departments ensure that 19 million tons of coal was imported from overseas by the end of June. After the demand for power rose to historical high in April, India was forced to take the "back road" in the policy of cutting coal imports.

Earlier, there were media reports that although there was "financial trouble" with Russia, India was exploring the establishment of rupee payment mechanisms with Russia to eliminate the adverse effects of European and American sanctions on Russia. Once a new payment model is established, India will continue to import Russian coal. But from the latest developments, the rupee payment mechanism has not been achieved smoothly.

Another media reported that because of the low coal reserves of the power plant, India is on the edge of the energy crisis and is actively purchasing imported products. In the first quarter of this year, Russia's exported power coal to India reached 573,200 tons, a year -on -year increase of 2700 times.

The latest incident shows that although the rupee payment mechanism has not been promoted, the RMB payment obviously solves the urgent urgency of India's imports.

The internationalization level of the RMB has been fully improved

A series of chain reactions brought by the Russian -Ukraine conflict include the weakening of the US dollar as the status of international currency. In this case, some of the RMB compensate the function of international settlement currency and objectively promote the internationalization of the RMB.

Xu Yang said in an interview with the "Daily Economic News" reporter that since Russia's sanctions, many countries in demand have had to use non -US currency for transactions, and RMB is a very suitable trading currency at this time.

Xu Yang said that from this transaction, we can smell the US dollar hegemony that is weakening, and the internationalization process of RMB is accelerating. As the European and American stations sanction Russia, the interests between member states will further reduce the international status of the euro and the US dollar, and the internationalization of the RMB will be further advanced.

2 According to public information, on May 11, 2022, the International Monetary Fund's executive director will complete the five -year special withdrawal right (SDR) fixed review review. It is decided to maintain the constant composition of the existing SDR basket currency, that is, it is still composed of US dollars, euro, RMB, yen and pounds, and raised the weight of the yuan from 10.92%to 12.28%, and the US dollar weight was raised from 41.73%to 43.38%. The weights of the three currencies, namely the euro, yen and pounds each have a slight decline. The weight of the RMB remains third. The new SDR currency basket is officially effective on August 1 this year, and the next SDR fixed review was carried out in 2027.

The "RMB Internationalization" report released by the central bank in September 2021 mentioned that according to the International Monetary Fund (IMF) official foreign exchange reserve currency composition (COFER) data, as of the end of the first quarter of 2021, the RMB reserve scale of the global central bank was 2874.64. US dollars, accounting for 2.5%of the total amount of foreign exchange reserves indicated by the currency, ranking fifth, and the highest level since IMF announced the announcement of RMB reserve assets in 2016. According to incomplete statistics, as of September 2021, more than 70 central banks or currency authorities around the world include RMB in foreign exchange reserves.

The reporter noticed that in 2020, the Bank of China conducted a market survey on the use of RMB in domestic and foreign industrial and commercial enterprises and financial institutions. Overseas industrial and commercial enterprises interviewed overseas covered 32 countries and regions. The survey showed that the renminbi was further consolidated as the basis of settlement currency. About 78.8%of domestic and foreign industrial and commercial enterprises were considering using RMB or increasing the use of RMB in cross -border transactions, which increased from previous years. On June 25, 2022, the People's Bank of China and the International Clearance Bank (BIS) signed an agreement to participate in the RMB liquidity arrangement (RMBLA). RMB liquidity arrangements are a financial institutional arrangement initiated and designed by the International Clearance Bank. It aims to provide liquidity support for the central banks participating in the arrangement by building a reserve fund pool by building a reserve fund pool.

The People's Bank of China participated in the arrangement of the arrangement. The other participants include Indonesian Central Bank, Central Bank of Malaysia, Singapore Financial Administration and Chilean Bank of China.

The RMB liquidity arrangement is established by all participants, and all parties pay less than 15 billion yuan or equivalent USD. When there is a demand for liquidity, the participants can also borrow short -term funds from the reserve pool with a qualified mortgage in addition to their capital contribution parts.

The relevant person in charge of the central bank commented that the People's Bank of China participated in the RMB liquidity arrangement to help strengthen cooperation with international liquidation banks, meet the reasonable demand for the RMB in the international market, and make positive contributions to strengthening the regional financial security network.

Daily Economic News

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