Experts expect RMB internationalization to increase momentum

Updated 2018-01-23 10:54:02 Xinhua

The Use of the Chinese currency renminbi (RMB), or the yuan is expected to increase going forward, HSBC's Asian Economics Research co-head Frederic Neumann said on Monday.

He told reporters after a media briefing on Asian outlook that the RMB internationalization is a gradual process, but "we have seen progress in areas such as the inbound investment."

Enlarging trade and investment between China and the Association of Southeast Asian Nations under the China-proposed Belt and Road Initiative will spur the RMB usage, he said.

According to the expert, trade settlement cost and convenience, and risk diversification will be the drivers to facilitate the yuan usage moving forward. he said "some central banks are holding RMB as reserves."

HSBC's RMB business development global head Candy Ho also highlighted that Malaysia has been supporting the yuan in both cross-border trade, investment and financing.

With greater economic trade ties between China and Malaysia, she foresees more demand on RMB in Malaysian market.

"Chinese is not only participating in infrastructure projects in Malaysia, but also using Malaysia as a hub for regional expansion," she said.

Ajay Sharma, the bank's global trade and receivables finance regional head, believed that China's influence in global commodity market will be a key factor to drive the RMB usage.

Although the world commodity market has been dominated by the U.S. dollar in decades, he expects the trend to change as China is a big trading nation both as consumer and exporter now.

Proposed by China in 2013, the Belt and Road Initiative refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, aiming at building a trade and infrastructure network connecting Asia with Europe and Africa along the ancient trade routes of Silk Road.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58November 20 2018 21:53:47

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16November 20 2018 21:53:47

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18November 20 2018 21:53:47

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords