Recently, the central bank, the Ministry of finance, the Ministry of Commerce and the China Banking Regulatory Commission jointly issued the notice on expanding the RMB settlement area for cross-border trade.

The circular is clear that enterprises in Hebei, Shanxi, Anhui, Jiangxi, Henan, Hunan, Guizhou, Shaanxi, Gansu, Qinghai and Ningxia provinces (autonomous regions) can carry out RMB settlement in cross-border trade; the provinces of the provinces, the provinces, the autonomous regions, and the enterprises in the provinces shall expand their overseas territory in the RMB settlement of export commodities trade, and expand from neighboring countries to all overseas countries.

In July 2009, the central bank launched a pilot scheme for RMB settlement in cross-border trade. After the pilot expansion in June 2010 to 20 provinces, municipalities and autonomous regions such as Beijing, cross-border RMB settlement business was conducted orderly, and the demand for cross-border settlement by enterprises and banks continued to grow.

In the first half of 2011, the total amount of RMB settlement by cross-border banks was 957 billion 570 million yuan, up 13.3 times compared with the same period last year.

From the actual operation of cross-border RMB trade settlement business, Hongkong is the main source of RMB cross-border trade settlement.

In 2010, the total amount of cross-border RMB trade settlement handled by Hongkong amounted to 369 billion 200 million yuan, accounting for 73% of China's cross-border RMB trade settlement.

It is worth noting that the recent official words about "RMB internationalization" are very few and replaced by "cross border use of RMB".

Central bank governor Zhou Xiaochuan has made clear that the central bank adopted a "prudent" attitude towards "RMB internationalization" and put forward the "cross border use of RMB".

The central bank relieves the obstacles to cross border use of RMB from policy, and development relies mainly on it.

Internationalization first requires currency stability.

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Zhao Qingming, a financial expert, said that expanding to the whole country is an inevitable requirement for RMB internationalization.

If it is not extended to the whole country, it will be unfair to other provinces and municipalities.

Zhao Qingming believes that at present, many countries and regions use the RMB settlement and reserves, and their motives are not pure. What is more important is the prospect of RMB appreciation, rather than the renminbi as a long-term international reserve currency.

"Why does the US dollar become an international settlement and reserve currency? The key is the stability and convenience of the US dollar. At present, the RMB is not stable and has been in the one-way appreciation channel."

Zhao Qingming said that the first step in promoting RMB internationalization is to achieve currency stability.

Cao Heping, Professor of economics at Peking University, said the renminbi