White Paper: RMB status moving closer to dollar and Euro

A white paper by a major Chinese bank revealed on Friday that thirty percent of its foreign interviewees believe that the future status of RMB will be close to that of the US dollar and the Euro.

The white paper was carried out by the Bank of China on its cross-border RMB business. It is based on the results of 3000 questionnaires from both its domestic and foreign clients which covered the majority of countries and regions trading with China.

The use of RMB in cross-border trade, representing 11 percent of all transactions at the end of May, witnessed a sharp increase since the pilot cross-border RMB settlement was launched in July, 2009. The volume of cross-border RMB settlement in the Bank of China amounted to 1.6 trillion yuan during the first half of this year.

The White Paper suggests that most of the questionnaire respondents maintain positive expectations for the internationalization of RMB and more than half of those polled believe the volume of cross-border RMB settlement would account for 20-30 percent of all cross border settlements in the coming five years.

Among the findings of the questionnaire, 77 percent of Chinese domestic clients and 61 percent of foreign clients plan to utilize RMB in cross-border trade or further improve RMB settlement ratio; while the amount of foreign clients willing to use RMB this year, compared to those taking the questionnaire in 2012, rose by 7 percent.

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