Theme flags of the third Belt and Road Forum for International Cooperation are seen along Datun Road in Beijing on October 16, 2023. Photo: VCG

A total of 369 practical collaboration projects have been inked at the third Belt and Road Forum for International Cooperation (BRF), with projects aimed at promoting financial cooperation and the internationalization of the yuan emerging as a highlight.

The financial cooperation under the Belt and Road Initiative (BRI) has brought tangible benefits to the BRI partner countries, distinguishing it from the self-interest-focused policies of the US, observers said.

Among the collaboration projects, the Bank of China helped Egypt in successfully issue Africa's first-ever Panda bond. It also issued the world's first batch of green bonds with the theme of jointly building the BRI.

The Industrial and Commercial Bank of China has issued 10 billion yuan worth of green financial bonds and global multi-currency green bonds with the theme of carbon neutrality.

The National Development and Reform Commission of China signed the MOU on exchange and cooperation in the field of economic development policy with the Ministry of Economy of Serbia. It has also signed a MOU on strengthening digital currency cooperation with the central bank of the UAE as well as a MOU on cooperation with the central bank of Indonesia.

These collaborations demonstrate that the BRI has brought China closer to BRI partner countries in terms of economic and trade relations, stimulated investment projects, and facilitated the internationalization of the yuan in this process, observers said.

They noted that the internalization of the yuan has brought tangible benefits to the BRI partner countries.

On one hand, it can provide ample liquidity for trade and investment to BRI partner countries, and offer strong financial support for local infrastructure development. On the other hand, the stability of the yuan will help the BRI partner countries minimize exchange rate risks in trade, reduce transaction costs and enhance financial stability, especially in the light of the US' reckless monetary policy, observers said.

The internationalization of the yuan has been steadily progressing in recent years, with the latest encouraging development being the yuan's settlement share in global trade, which hit a record of 24 percent in the first seven months of the year, an official of China's central bank said in September.

Global Times