The People’s Bank of China is the latest proof
that the Chinese renminbi is gaining international recognition as a
significant currency.
The bank is now allowing all Chinese merchants
that import and export goods to settle their trades in their own
currency.
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This is a landmark step for the renminbi’s
internationalisation, according to David Sear, chief operating
officer of Western Union Business Solutions, which last year had
added the renminbi to its Global Clearing Network.
“It brings the renminbi that much closer to
becoming a real challenger to the dollar as a global reserve
currency and marks the latest in a series of moves that clearly
demonstrates a fully international RMB is on its way sooner rather
than later.
“We are witnessing a global currency shift
that will profoundly influence how international business is
conducted. This is the biggest change to international remittances
since the arrival of the euro,” he said.
According to Sear, “it is now as easy for
British companies to trade in China’s local currency as it is to
trade in USD. British companies who are quick to adapt to RMB
settlement will be well-placed to gain a global competitive
advantage over those who are behind the curve.”
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