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Business/Finance See other Business/Finance Articles Title: Issues to be addressed in renminbi's internationalization Want... The renminbi was recently in the limelight due to developments concerning each country's investment and voting share in the Beijing-led Asian Infrastructure Investment Bank (AIIB) and the International Monetary Fund's review of its Special Drawing Rights basket of currencies. Since People's Bank of China governor Zhou Xiaochuan announced plans to internationalize the yuan in March 2009, the Chinese currency has become more widely accepted around the world for trade settlement and currency exchange. The latest data from the Society for Worldwide Interbank Financial Telecommunication showed that 31% of cross-border payments made between countries in the Asia-Pacific region and China (including Hong Kong) used the renminbi, up from just 7% in 2012. At the end of 2014, 6.6 trillion yuan (US$1.06 trillion) of cross-border trade, which accounted for 25% of China's foreign trade, were settled in the Chinese currency, while Beijing has signed yuan clearing and settlement deal with 15 countries and regions. Beijing has also signed currency swap deals with central banks or monetary authorities in nearly 30 countries and regions. However, the Chinese government's efforts to internationalize the currency have not been without opposition at home and abroad. The yuan's long-term appreciation trend has hurt Chinese importers, many of whom have been forced out of business, while financial reforms set to liberalize the market are resisted by big banks at home. Beijing's Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives and the AIIB have also raised concerns from the United States and other countries, as these economic projects are seen as China's way to expand its clout on the global stage. Given these concerns and resistance, the Chinese government needs to begin considering a better approach to establishing the yuan as a global currency and gaining a bigger say in the world. China needs to continue encouraging exporters to transform and upgrade, while allowing banks to engage in ventures beyond deposits and loans, lessening their fears about surviving in a free market. In addition, China needs to take up more international and social responsibility as an aid-giving country and ensure a balance of interests for all parties in order to ease anti-Chinese sentiment and other countries' concerns about the rise of the currency. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 1.
#1. To: Tatarewicz (#0)
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