China has been
pushing for yuan's
global use, as the world's largest trading nation looks to lower transaction
cost in international trade, which is mostly settled in US
dollars at present. Renminbi has
joined the ranks as one of the most-widely used currencies in global
markets.
CNBC reports
that the renminbi stands as the world's largest trade-finance currency after the
US dollar. China's currency is expected to surpass the Japanese yen
as the world's 4th-most used international currency.
Data released by the International Monetary Fund (IMF) showed that in 2014 the
renminbi had accounted for 2.96 percent of worldwide trades, along with total direct investments valued at US$ 1.05 trillion.
Moreover, $94 billion of official assets were already held in renminbi at the
end of 2014, accounting for 1.1 percent of global foreign
exchange reserves.
The IMF last year agreed to include renminbi into its Special
Drawing Rights (SDR) currency basket, as a clear representation of the reforms in
China.
Last week, the Monetary Authority of Singapore (MAS) announced that it will
include renminbi investments as part of its official foreign reserves from
June.
Rani
Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of
financial experience in Asia, said, “As China plays an increasingly important
role on the international stage, RMB is becoming truly global and this is set to
continue.”
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