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.
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.