Over 60 foreign central banks or monetary authorities have included Chinese currency RMB in their foreign reserves by the first quarter of this year, Deputy Director General, Monetary Department, People’s Bank of China, Dr. Zhang Xuechun said.
The share of RMB in the foreign exchange is US$ 84.5 billion, seventh among eight currencies listed by International Monetary Fund, she said while delivering a lecture on “Internationalization of Renminbi in the context of the Belt and Road Initiative” at an Asian Media Workshop and 2017 Media Cooperation Forum on Belt and Road here.
The event is being attended by journalists and media persons from diverse media organizations, newspapers, TV news channels and media houses of 25 Asian countries including Pakistan.
Dr. Zhang said in May 2017, 66 overseas institutions including 18 overseas settlement banks, 19 overseas participating banks, and 29 overseas central banks of monetary authorities were carrying out transactions.
The RMB direct trading with 25 currencies were established and the transaction volume was RMB 50 billion in 2016, double the size of 2015, she added.
She, however, commented that despite being the largest economy and second largest in trade largest buyer or consumers of many commodities including gas, copper, zinc, iron ore and steel, China’s currency is way behind in trade.
About future policies, she said in the 13th five-year program, it has been realized RMB capital account convertibility in an orderly manner. The National Finance Working Conference will also deepen RMB-FX formation reform and promote RMB internationalization.
She said the international investors need to allocate RMB-dominated assets while Chinese investors should diversify their portfolio.—Agencies