"Deutsche Bank analyst Alan Cloete argues the renminbi is expected to become a major reserve currency in the next decade, a move that could see the greenback's share of global reserve currencies fall from about 60% now, to 50% by 2020.
Cloete notes that Berkeley economist Barry Eichengreen has said that the renminbi could account for 15% of global currency reserve holdings within ten years.
Cloete elaborates:
The yuan may also become more easily accessible for foreign investors. Hong Kong already operates as an offshore yuan trading market, and China is looking to start another in London, while Singapore has expressed its interest as well. And of course, there's been all that chatter about the yuan becoming fully convertible as early as 2015.
Cloete also adds that a few years from now, the Hong Kong dollar could eventually merge with the renminbi as well."
at http://www.businessinsider.com/deutsche-bank-the-renminibi-is-the-worlds-next-reserve-currency-2011-12?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider+%28Business+Insider%29#ixzz1fgrGosDP
Cloete notes that Berkeley economist Barry Eichengreen has said that the renminbi could account for 15% of global currency reserve holdings within ten years.
Cloete elaborates:
"Demand for RMB is bound to accelerate, given China’s commitment to liberalize its capital and current account by the end of 2015.
Hardly a month goes by without the People’s Bank of China further loosening the restrictions on onshore RMB trade settlements for foreign investors and customers. For instance, since August 2011 foreign businesses have been able to settle contracts in RMB in any province in China, a relaxation of the rules that would have been unimaginable even two years ago."
In September, Chile's central bank said 0.3% of its international reserves were held in renminbi. We previously wrote about major oil player Nigeria's plan to diversify 5% - 10% of its foreign exchange reserves to include the yuan.The yuan may also become more easily accessible for foreign investors. Hong Kong already operates as an offshore yuan trading market, and China is looking to start another in London, while Singapore has expressed its interest as well. And of course, there's been all that chatter about the yuan becoming fully convertible as early as 2015.
Cloete also adds that a few years from now, the Hong Kong dollar could eventually merge with the renminbi as well."
at http://www.businessinsider.com/deutsche-bank-the-renminibi-is-the-worlds-next-reserve-currency-2011-12?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider+%28Business+Insider%29#ixzz1fgrGosDP
