KPMG Report: Going global: Trends and implications in the internationalisation of China’s currency – 2017 Go back »
2017-02-10 | Beijing
KPMG recently published a report on RMB internationalisation, titled ‘Going global: Trends and implications in the internationalisation of China’s currency – 2017’. The report is the second in a series on RMB internationalisation sponsored by the UK Department for International Trade and the China Foreign Exchange Trade System, and includes interviews with 15 industry participants, and surveys more than 50 others. The report focuses on the opportunities, challenges and implications, as seen by those involved in international RMB products and services.
The report notes that China is investing in long-term international and domestic frameworks that support the internationalisation of the RMB. There have also been a number of developments, including its recent inclusion as the fifth currency in the IMF’s special drawing rights scheme, and the addition of new infrastructure to encourage RMB investments, such as the Shenzhen-Hong Kong Stock Connect, or FTSE Russell’s transitional inclusion of Chinese equity into global indices.
Going forward, the survey interviews point to market anticipation that several cross-border programmes will see some sort of regulatory and usage volume breakthroughs. In the next three to five years, the participants generally expect the fundamentals to take over from regulation-driven initiatives in the RMB journey.
Source: KPMG
