The Rmb is ready to dominate
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clpstaff &clp articlesOver the past two years, China has issued numerous policies and programmes to internationalise the yuan. From the proposed Shanghai international bourse to the launch of the Mini-QFII scheme this year, it's clear that China's intent is to bring her currency to the centre of the world stage and align it with the country's growing influence in global trade and finance
In November 23, China and Russia agreed to expand local currency settlements for bilateral trade after the renminbi (Rmb) commenced trading against the Russian Ruble on the Chinese interbank market. This is a significant development in that it is the first time China has put in place such a local currency settlement arrangement with another major global economic power. The Rmb is expected to trade on the Russian market this month and the Ruble is the seventh currency traded on China's foreign exchange system after the introduction of the US Dollar (USD), Hong Kong Dollar (HONG KONGD), Euro, Yen, British Pound, and Malaysian Ringgit.
In 2009 and 2010, the Chinese government has issued a number of important policies and programmes to push forward with the gradual internationalisation of the Rmb. This comes at a time when the global economy is still recovering from the 2008 global financial crisis, and when international investors are shifting their activities and focus to Asia, which is expected to lead global economic growth in the coming decade.
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