Why do we have to use foreign currencies to settle domestically produced aircraft?

Air China chose to settle in US dollars when purchasing C919 aircraft, which is in line with the market practice of the aviation industry, reduces exchange rate risks and enhances international credibility. The internationalization of the RMB is a gradual process, and it is expected to increase its share in international settlements in the future. This move does not exclude the RMB, but is based on multiple factors.

We must make it clear that the choice of currency settlement in international trade is determined by multiple factors, not just based on the origin of the product. In fact, in international trade, the choice of currency for settlement mainly depends on the willingness of the two parties to the transaction, market habits, and exchange rate risks.

Regarding the question of "why not use RMB for settlement" that some netizens are concerned about, we should also see that the internationalization of the RMB is a gradual process. With the continuous development of China's economy and the deepening of opening up to the outside world, the status and role of the RMB in the international arena are also constantly improving. In the future, with the advancement of RMB internationalization and the strengthening of financial cooperation such as bilateral currency swaps, the share of RMB in international settlements is expected to increase further.

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