(Yicai Global) June 11 -- Changes in the value of the Chinese yuan against other currencies do not need to be seen as a “barometer” of its internationalization, the Paper reported, citing the head of the Export-Import Bank of China.

The redback’s internationalization is still at an early stage, so there is no need to overly interpret the process or see it as a weapon for international confrontation, Hu Xiaolan, who is chairwoman of the state-owned policy bank, said at the 13th Lujiazui Forum today, according to the report.

The internationalization process has been given many connotations, Hu said, which also include treating the yuan as an international safe haven currency and using the digital yuan as a shortcut to making the redback a global currency.

“Internationalization of the yuan is based in China,” she said, and is “a natural and long-term process as the Chinese economy deeply participates in the global division of labor and the mutual benefit of international trade and investment.” It should not be a short-term explosive process characterized by speculative trading, nor should it be blocked by financial speculation in the offshore and surrounding markets, Hu added.

China’s economic trajectory will create a big domestic market with huge capacity and growing demand, as well as consolidate and broaden the main channel for cross-border trade receipts and payments in yuan, she said, providing the basic conditions for cross-border payment and settlement.

According to Hu, the booming green finance field will also bring new opportunities to the yuan’s internationalization. The expansion of China's green bond and carbon trading markets, more related financial products, and trading diversification will attract more and more investors.

China’s green finance can be more open and forge international links to build a market to fight climate change. As the yuan is a green finance currency for pricing and settlement, further expanding its cross-border application will open up new development paths for its internationalization, she added.

Editor: Futura Costaglione