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 (3 years ago)
Catholic Online (https://www.catholic.org)
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.
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.
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.
Copyright 2018 - Distributed by THE CALIFORNIA NETWORK
Pope Francis Prayer Intentions for FEBRUARY 2018
Say 'No' to Corruption. That those who have material, political or spiritual power may resist any lure of corruption.
Global markets have dropped for the past few days, and just this morning have rebounded. It remains to be seen if the recovery is ... continue reading
The world is richer and more productive than ever before in history. Yet, income inequality is growing the poverty is on the rise. Middle ... continue reading
Income inequality - Here's why world poverty and hunger remain a problem, frustrating Pope Francis' efforts to solve the crisis Watch
When Pope Francis accepted the chair of St. Peter, he pledged to end world hunger by 2020. By all appearances, it was an easy win. The math ... continue reading
Jobless claims historic low! - Why workers are getting raises this year, thanks to President Trump Watch
Say what you will about President Trump, but American workers are starting to "win" under his administration. Jobless claims have reached a ... continue reading
Early reports from the retail sector show that sales between November 1 and Christmas Eve were up 4.9 percent over last year. Workers ... continue reading
by Catholic Online
- Daily Readings for Wednesday, March 21, 2018
- Fasting, Refreshing the Routine and Living Lent
- Sin HD Video
- 'Living Lent': Wednesday of the Fifth Week of Lent - Day 36
- NOT AGAIN - 'Multiple casualties' at Maryland school shooting HD Video
- St. Enda: Saint of the Day for Wednesday, March 21, 2018
- The Truth about Easter and Divine Mercy Sunday
- Daily Reading for Thursday, March 22nd, 2018 HD
- Daily Reading for Wednesday, March 21st, 2018 HD
- International study shows stem cells can stop MS and relieve symptoms HD
- Daily Reading for Tuesday, March 20th, 2018 HD
Learn about Catholic world
Inform - Inspire - Ignite
Catholic Online Saints
Your saints explained
Catholic Online Prayers
Prayers for every need
Catholic Online Bible
Complete bible online
Catholic Online News
Your news Catholic eye
Today's bible reading
Products and services we offer
Catholic Online Shopping
Catholic medals, gifts & books
The California Network
Inspiring streaming service
Learn the Catholic way
Teacher lesson plans & resources
Support Free Education
Tax deductible support Free education