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Tuesday, Nov 4, 2014

Asia

41 per cent overseas firms positive about RMB

China Daily/ANN | Tuesday, Nov 4, 2014

More enterprises have positive attitude towards the prospect of the renmibi becoming an international currency, as poll showed on Nov 1, China News Service reported.

According to the research, 41 per cent of 3,000 overseas enterprises who were interviewed think that renminbi is likely to become "a very important international currency" and the recognition of its position and function "may get close to the US dollar and euro", according to Tian Guoli, chairman of Bank of China.

This is an increase by 10 percentage points over 2013. The volume of renminbi cross-border settlements with a third party outside of Chinese mainland rose by more than 30 percentage points, said the companies based overseas.

The market shows that global investors have high confidence in renminbi. In the first 10 months this year, the offshore renminbi bonds balance reached 775.9 billion yuan (S$163.7 billion), 179.6 billion yuan of it are new issue bonds, according to Tian.

Bank of China's global customer survey reported that 87 per cent of domestic enterprises and 65 per cent of foreign companies use renminbi in cross-border settlements, rising 10 and 8 per cent respectively from 2013.

Tian said China's economic reform will contribute largely to renminbi internationalization. In the next five years, China will import commodities worth US$10 trillion (S$12.9 trillion) as projected and the overseas investments will exceed US$500 billion.

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