Not a chance, because China still lacks many of the economic, political, and cultural attributes that are essential for making the
renminbi a global currency.
Xu Haifeng, Executive VP of Bank of China USA, "As The People's Bank of China (BOC) has announced that Bank of China New York branch as the first
renminbi (RMB) clearing bank in the United States, BOC is now introducing more
renminbi products and offering more
renminbi services to US investors.
Closer
Renminbi ties between China and the UK, new CNH products in South Korea, and the imminent launch of the new cross-border
Renminbi settlement system in CIPS (Cross Border Interbank Payment System) should also all help anchor confidence and bolster future CNH use.
The first part of these critics' charges is certainly true: China has undervalued the
renminbi at least since 2001, as confirmed by China's massive accumulation of foreign-exchange reserves.
Meanwhile, cross-border settlement via the
renminbi also experienced a boost thanks to the programs that streamlined the procedures.
25% to 2,016 in October from the prior month, mainly attributed to
Renminbi deposit growth as FX turnover and Dim Sum bond performances remaind lacklustre.
In 2013, the
renminbi entered the Bank of International Settlements top 10 most traded currency, contributing to 2.
The Chinese authorities confirm with this designation the important role that Luxembourg plays in the context of the internationalisation of the
Renminbi and as one of the major European
Renminbi hubs," it noted.
The shift from dollar cross-border settlement to yen or
renminbi settlement will gain momentum if it is clearly shown that spreads on the customer market have become smaller.
Many overseas banks are now more willing to carry out
renminbi business," said Zhang Qingfu, head of the Middle East and Africa overseas business division of Haier Group, China's largest home appliance manufacturer, adding that cross-border trades with China can now be settled in
renminbi in many countries and regions.
The implementation of this movement of funds is conducted through an intercompany loan," said Joe Ng, Asia Pacific head of
Renminbi payments product management for Global Transaction Banking at Deutsche Bank.
Among the currencies of the world's five largest economies, China's
renminbi is the only one that is not a reserve currency.
