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Renminbi’s Rapid Rise Concentrates Minds

Multinationals and other traders increasingly conduct business with the renminbi. “The rise of the renminbi heralds a major change in the global financial system and is happening much faster than people think, with new roles for global corporates, banks and financial centres being thrashed out at breakneck speed,” argues bank executive Mike Rees in an opinion essay for the Financial Times. Trade in renminbi is up by nearly 30 percent for 2012 over the previous year. “Over the next decade, it will be an important international transaction currency, and in 10-20 years, amid substantial capital account liberalisation by China, it will be a significant reserve currency alongside the dollar and other developed currencies,” Rees notes. Companies like Tesco and Jaguar Land Rover recognized early the benefits of efficient transactions and Chinese expansion funded by the offshore renminbi bond market. As financial capitals compete to set up accounts and profit from the renminbi, the currency is gaining credibility and international status. – YaleGlobal

Renminbi’s Rapid Rise Concentrates Minds

The renminbi is an international currency, being adopted apace, driven by business demand
Mike Rees
The Financial Times, 20 December 2012
Click here for the article in The Financial Times.
Source:The Financial Times
Rights:Copyright The Financial Times Limited 2012.