Skip to content

The buck does stop here: Chinese currency set to close the gap between it and the dollar

By Catholic Online (NEWS CONSORTIUM)
7/22/2014 (2 years ago)
Catholic Online (www.catholic.org)

Yuan to be among top used currencies by 2019

China's currency, the renminbi (RMB), is looking to become the third-largest international currency behind the U.S.'s dollar and the euro by 2019 said the Renmin University of China in a report published on July 20.

A new study from China indicates that the Chinese yuan is likely to become the third most used international currency by 2019.

A new study from China indicates that the Chinese yuan is likely to become the third most used international currency by 2019.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (www.catholic.org)
7/22/2014 (2 years ago)

Published in Business & Economics

Keywords: Finance, Economics


LOS ANGELES, CA (Catholic Online) - Last year, the RMB cross-border trade settlement amounted to 4.63 billion yuan-roughly $746 billion-up 57.5% from 2012. The Chinese currency accounted for 2.5% of all worldwide cross-border trade settlements.

Share God's light, end world hunger with "prayer and action."

By the end of 2013's fourth quarter, direct investment in the RMB amounted to about 433 billion yuan, 1.9 times the same period in 2012.

Currently, the RMB is the fifth-most widely used international currency, behind the British pound in third, and the Japanese yen at fourth.

The offshore yuan market has seen rapid development in recent years, and this year the People's Bank of China signed a memorandum of understanding regarding the yuan clearing and settlement arrangements with central banks in the UK, Germany, Luxembourg, France and South Korea.

Despite the rapid expansion the RMB has seen, massive internationalization will still see many challenges, including the technical issue of having the currency used internationally.

"To resolve the problem, China has to build a safe, efficient and low-cost offshore RMB clearing system as soon as possible," said Chen Yulu, the president of Renmin University and member of the central bank's monetary policy committee.

"In addition, the regulators must create a legal framework for the offshore RMB market and make sound regulations to stop money laundering and tax evasion via offshore yuan transactions."

Part of this increase is due to the growth of Chinese economic power, and an increasing number of countries have become willing to accept the RMB as a reserve currency. At the end of 2013, the People's Bank of China had signed currency trade agreements involving 2.57 trillion yuan with 23 countries and regions.

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for FEBRUARY 2017
Comfort for the Afflicted.
That all those who are afflicted, especially the poor, refugees, and marginalized, may find welcome and comfort in our communities.


Comments


More Business & Economics

Pope Francis' nightmare? World's richest 8 men own as much as 3.6 billion people Watch

Image of The richest one percent own what the world's poorest have COMBINED.

During an interview with Dutch newspaper Straatinieuws, Pope Francis explained: "I would like a world without the poor. We must fight for ... continue reading


Is YOUR job in danger? Thousands of Americans to lose jobs as 218 iconic American brands collapse Watch

Image of Over 200 American brands are closing stores to keep their heads above water.

An iconic American brand with a century-long history is shutting down hundreds of stores in the face of bankruptcy. LOS ANGELES, CA ... continue reading


Yes, Millennials are lazy, but it's not their fault says one high-profile consultant Watch

Image of Simon Sinek says millennials are lazy, but it isn't their fault.

Yes, Millennials, you have a problem, but it's not your fault. This is the conclusion of Simon Sinek, the famous leadership consultant who ... continue reading


Third of millennial adults still living with parents -- here's the reason why and what we had better do about it... soon Watch

Image of They can't change a tire, but they can protest like champs. It doesn't help we are paying them less for the same work as previous generations. Our debt is accruing interest, and they're losing interest in democracy.

Adults are living at home with their parents in numbers not seen since the Great Depression. LOS ANGELES, CA (California Network) - If ... continue reading


The genius secret why Trump is stacking his cabinet with pro-business staff Watch

Image of Our nation is about to be great once again.

Donald Trump is facing a lot of criticism over his cabinet choices. He has repeatedly appointed Washington D.C. outsiders to posts within ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.