Investor Presentaiton
The Roadmap of RMB Internationalization
Trade Currency
Any corporate can use RMB to settle
trade anywhere in the world
Cross Border Trade Settlement
China
2009: Pilot for 5 Cities
2010: 20 Provinces
2011: Nationwide in
China
Rest of World
2009: Pilot for 3
countries/
territories
Documentation
2010: All countries/
territories
2012: Provincial pilots of simplification
2013: Nationwide simplification
2014: SFTZ: no documentation
Investment Currency
RMB increasingly used in cross-
border investment and financing
Offshore RMB Centers
London
Hong Kong Taiwan
Singapore
2007: RMB-denominated bond
2010: CNH transferability, access to China
bond market, RMB-denominated ETFs
2011: RMB IPO, 2013: CNH HIBOR fixing
2014: HK Primary Liquidity Provider (Citi)
Cross-border Investments
2011: RQFII 1 - RMB20bn
2011: RMB FDI and ODI, FIE financing offshore
2012: RMB inter-company loan
2013: RQFII 3 - RMB270bn, further relaxation
on RMB FDI
2014: SFTZ: 2-way RMB pooling
2014: SH-HK stock connect, RQDII (no quota)
2015: Mutual Recognition of Funds (MRF)
Reserve Currency
RMB on its way to become a world
reserve currency
RMB in Reserve Portfolio
RMB entered Special Drawing Rights
currency basket in Nov 2015
20 has established arrangement for
clearing and settlement
At least 38 central banks hold RMB
reserves as of 2014 (IMF 2015 survey)
Currency Swap Agreements
Bilateral currency swap agreements
between China and 32 central banks
NZ
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