China goes for an international currency with Europe’s help

EPA/WU HONG

Chinese remnibi banknotes. On 21 October 2015, People's Bank of China (PBC or PBOC), the central bank of China, launched a yuan-denominated bond auction in London, Britain. The move, said to be made for the first time outside of China, intends to internationalize China's currency facilitating cross-border trade and investment in the offshore market. The note, worth five billion yuan (about 690 million euro or 786 million US dollar), has an interest rate of 3.15 percent and its falls are due in 2016. The central bank's announcement was made as Chinese President Xi Jinping is in Britain on a four-day official visit.

China goes for an international currency with Europe’s help


Bloomberg reports that China is about to set 2020 as a deadline to go international. Making the remnibi fully convertible is on the Communist Party agenda next week, and is expected to be on the 13th Five Year Plan.

For the moment, China in theory has an inconvertible currency. Movement of capital is controlled.

A floating Chinese currency of the second biggest economy in the world is likely to make it to the international basket of reserve currencies. That is Beijing’s objective. On the o...


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