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08:30, 19-Oct-2017
China's central bank says RMB's reserve currency role will gradually emerge
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The People's Bank of China (PBOC), China's central bank, said it will push forward the renminbi internationalization and its function as a reserve currency will gradually emerge, adding that more than 60 countries and regions have included the renminbi in foreign exchange reserves.
The bank also said it will push forward with internalization of the renminbi and keep its position stable in the global monetary system, according to a report posted on the PBOC website on Tuesday.
"Looking ahead, the scope of international usage of renminbi will be further expanded in 2017 and usage channels will be further widened," the central bank said in the report.
The People’s Bank of China /VCG Photo
The People’s Bank of China /VCG Photo
The International Monetary Fund added the renminbi to its basket of reserve currencies last October, in addition to the US dollar, the euro, the yen and the pound.
"Renminbi internationalization will play a more active role in serving the real economy and facilitating trade and investment."
The report, however, said the value of trade deals settled in the renminbi, fell by 35.5 percent in 2016 from the previous year.
Renminbi settlement accounted for 16.9 percent of China's total goods trade last year, while the proportion was 22.6 percent in 2015, 20 percent in 2014, and close to zero in 2009.
The currency fell by 6.5 percent against the dollar in 2016 – the biggest annual drop since 1994, but gained about 5 percent this year due to dollar weakness and tighter controls on capital outflows.
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(With input from Reuters)