The Renminbi is on track to become the third-largest international currency behind the US dollar and the euro within five years as China accelerates its promotion of the Renminbi, said a Renmin University of China report released on Sunday.
Last year, RMB cross-border trade settlement amounted to 4.63 trillion CNY (746 billion USD), up 57.5 percent from 2012. It accounted for 2.5 percent of cross-border trade settlement worldwide, the report said.
By the end of the fourth quarter of 2013, direct investment settled in Renminbi amounted to 533 billion CNY, 1.9 times the same period in 2012.
The RMB is currently the fifth-most widely used currency internationally. The British pound is third and the Japanese yen fourth.
The offshore Renminbi market has been developing rapidly in recent years, and this year the People's Bank of China signed a memorandum of understanding regarding Renminbi clearing and settlement arrangements with the central banks of the UK, Germany, Luxembourg, France and South Korea.
Chen Yulu, president of Renmin University and member of the central bank's monetary policy committee, said the offshore Renminbi market in Europe has huge potential since major European financial centre are competing for the market.
Wei Jianguo, vice-chairman of the China Centre for International Economic Exchanges, suggested the government establish additional centres in places such as Dubai, South Africa and Latin America.
In spite of the rapid expansion of the RMB, its internationalization still faces many challenges including technical difficulties using the currency globally.Â
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The Renminbi is on track to become the third-largest international currency behind the US dollar and the euro within five years as China accelerates its promotion of the Renminbi, said a Renmin University of China report released on Sunday.
