Magazine article New Zealand Management

In Box: Renminbi on the Rise

Magazine article New Zealand Management

In Box: Renminbi on the Rise

Article excerpt

New Zealand managers need to become as familiar with the RMB as they are with the USD, AUD and the Euro, according to ANZ New Zealand managing director institutional David Green.

The Chinese currency -- the renminbi (RMB) or yuan -- will inevitably become a major international currency, notes Green, and a large market in the currency could be operating within only a few years.

Since 2003, banks in Hong Kong have been allowed to conduct limited personal RMB business, such as deposit-taking and remittances. In July 2010, the "People's currency" made a quantum leap when RMB was allowed to travel outside China on a deliverable basis as part of the progressive deregulation and internationalisation of the Chinese economy.

Green says that as a result "in just six months, cross-border trade settlement witnessed a 10-fold increase to RMB101 billion (NZ$19.8 billion) per month in December 2010, compared with RMB10 billion (NZ$2 billion) in June.

"This meteoric ascent of the RMB in cross-border settlement is evidence of the RMB's progress towards inevitably becoming one of the world's principal global trading currencies. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.