Last year, the
IMF decided to add
yuan into its
Special
Drawing Rights (SDR) currency basket, making it one of the five
reserve
currencies fully endorsed by the 188-member organization.
Chinese currency is increasingly being accepted in cross-border transactions,
as the currency gains increased global recognition.
IMF data showed that $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.
According to report from the
People's Bank of China, the volume of cross-border
renminbi receipts
and payment in 2015 reached 12.1 trillion yuan ($1.83 trillion), accounting for
28.7% of the total volume of cross-border receipts and payments.
China has
aggressively promoted global use of the
renminbi, as the
world's largest trading nation looks to lower transaction costs in
international trade, which currently is mostly settled in
US
dollars.
PBOC declared that by the end of 2015,
yuan had become the
third most-used currency in cross-border trade and financing. It took fifth
place among all currencies for use in international payments and foreign
exchange trading. And the currency looks set to take up a greater share of
global
reserve currency assets.
Rani
Jarkas, Chairman of
Cedrus Investments, an investment pioneer with years of
financial experience in Asia, said, “I believe that yuan will become a major
currency and one of the most important in cross-border current account trading,
and overseas investors will enjoy wider access to yuan-denominated investment
and financing products.”
Rani Jarkas, the Chairman of
Cedrus Investments
Rani Jarkas, the Chairman of Cedrus Investments.
Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. -
Rani Jarkas
