Investor Presentaiton
Understand RMB
RMB is developing quickly as a functional currency for trade settlement and cross-border investment
Before 2009 - Domestic
Today - "One Currency, Two Systems"
RMB
(Renminbi)
Chinese Currency
(Onshore)
CNY
(Onshore)
SH
RMB
(Renminbi)
Current Account Capital Account
Current Account
Capital Account
Restricted
Restricted
Unrestricted
Subject to Approval
London
CNH
(Offshore)
Taiwan
Hong Kong
Singapore
Convertible
Current account and capital account
strictly controlled. No cross-border
allowed
⚫ G3 currencies used for cross-border
trade and investment
•
.
Little exposure for RMB outside China;
no offshore RMB market
FX daily band onshore + PBOC
Intervention
RMB as Top 5 World Payment Currency*
(20%+ of China RMB trade settled)
In the process of liberalizing capital
account
No FX restriction offshore
Onshore + Offshore FX Daily
Volume: $285Bn+
'Orphan Currency': no natural
oversight structure
*SWIFT, Data as of 2015; +According to Triennial Central Bank Survey of foreign exchange and derivatives market activity in 2013
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