In the first three trading days of October 2016, as an agent or counterparty in the interbank bond market and the interbank foreign exchange market, ICBC successfully concluded RMB foreign exchange and bond transactions worth nearly RMB 10 billion with multiple overseas central banks and international financial organizations in China’s interbank market.

In the first three trading days after RMB's official inclusion in the basket of the special drawing right (SDR) on October 1, 2016, overseas institutions significantly enhanced willingness to invest in the domestic interbank market. After rounds of inquiries, ICBC successfully concluded deals of RMB foreign exchange and RMB bond transactions with more than ten overseas central bank-like institutions, providing strong support for them to adjust asset allocation and increase RMB as reserve assets.

Currently China's interest rate has been relatively high and attractive to the international investors. RMB accounts for only 1% in the global foreign exchange reserves, which is expected to reach the level of JPY and GBP within five years, or increase five times. The proportion of the international investors in the custody amount of China's interbank bond market has been less than 2%, well below the average level of advanced economies and major emerging economies. Given the demand from commercial institutions, the potential remains huge for overseas institutions to allocate RMB assets. Following the inclusion of RMB into the basket, capital inflow arising from investors’ overweight of RMB-denominated bond assets would help ease market concerns over RMB depreciation.

As an important participant in China's interbank market, ICBC has won awards from China Foreign Exchange Trade System & National Interbank Funding Center, such as “Best Overseas Institution Settlement Agent” in interbank RMB market, “Best Market-making Institution” in RMB foreign exchange transactions, and “Best Market Influence Award” and “Best Market Maker” in RMB bond transactions. Since the People's Bank of China (PBC) allowed overseas central banks and monetary authorities, international financial organizations, sovereign wealth funds to enter China's interbank bond and foreign exchange market in July and September 2015, ICBC has successfully built partnerships with nearly 50 overseas central bank-like institutions in agency bond transaction, agency foreign exchange transaction, interbank RMB and foreign-currency transaction, and special deposit account opening for RMB settlement. For the next step, the Bank will continue to seize market opportunities and enhance market-making offer for bonds, foreign exchange and relevant derivatives products in China’s interbank market and strengthen ability to serve overseas central bank-like institutions in agency transactions.