The renminbi is on track to become the third-largest international currency behind the US dollar and the euro within five years as China accelerates its promotion of the yuan, said a Renmin University of China report released on Sunday. Last year, RMB cross-border trade settlement amounted to 4.63 trillion yuan ($746 billion), up 57.5 percent from 2012. It accounted for 2.5 percent of cross-border trade settlement worldwide, the report said. By the end of the fourth quarter of 2013, direct investment settled in renminbi amounted to 533 billion yuan, 1.9 times the same period in 2012. The RMB is currently the fifth-most widely used currency internationally. The British pound is third and the Japanese yen fourth. he offshore yuan market has been developing rapidly in recent years, and this year the Peoples Bank of China signed a memorandum of understanding regarding yuan clearing and settlement arrangements with the central banks of the UK, Germany, Luxembourg, France and South Korea. Chen Yulu, president of Renmin University and member of the central banks monetary policy committee, said the offshore yuan market in Europe has huge potential since major European financial centers are competing for the market. Wei Jianguo, vice-chairman of the China Center for International Economic Exchanges, suggested the government establish additional centers in places such as Dubai, South Africa and Latin America. full: chinadaily.cn/business/2014-07/21/content_17861466.htm
Posted on: Mon, 21 Jul 2014 04:26:10 +0000
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