China’s strategic currency goals are no secret – and other ASEAN nations stand to benefit.
Barely had anxieties over a collapse on Chinese share markets began to ease and stress levels were heightened again with the formal intervention to lower the RMB, followed by a market sell-off.
Delivering his opening remarks to the second Australia-Hong Kong RMB Trade and Investment Dialogue, Hong Kong Monetary Authority chief executive Norman Chan outlined the enormous growth in usage of the Chinese currency internationally since the first tentative openings just three years ago.
When the IMF said late last month it would review to consider adding China's RMB into its Special Drawing Rights basket it became pretty clear we have reached another inflexion point in China's currency story.
The International Monetary Fund is now conducting a review to consider including the RMB in the basket of Special Drawing Right (SDR) currencies and will make a final decision at the end of the year.
In an upcoming special report The Renminbi Takes Centre Stage, ANZ will provide insights on the evolution of the RMB into an international trading currency. In a special preview, exclusively on BlueNotes, the infographic below demonstrates the RMB journey so far.
I have many conversations about the renminbi (RMB) yet I almost never walk away without some new insight, perspective or appreciation of the opportunity emerging as China liberalises its currency and financial markets.
We run through the key themes to emerge from the RMB Global Cities Dialogue event.
China’s central bank, the People’s Bank of China (PBoC) surprised market by announcing it would use a daily fixing rate method to devalue the Yuan (the Renminbi or RMB). This was an historic decision as it signals a possible shift in short-term economic and financial dynamics across the world economy.
Unsettling economic data, an equities meltdown, now intervention in the Chinese currency market by the central bank. Signs China is stepping back from financial liberalisation?