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A Delicate Stage
Report

A Delicate Stage

The Future of the Renminbi as a Global Investment Currency

EIU, 2015 mais...

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Editorial Rating

8

Qualities

  • Comprehensive
  • For Beginners

Recommendation

Already the world’s second-largest economy, China is pursuing the integration of the renminbi (RMB) into the global economic complex. Despite a tumultuous summer in 2015 – which saw the Chinese economy experience a slowdown, a collapsing stock market and a currency devaluation – the RMB is taking on an ever greater presence in global business transactions and trading. Though published just before the RMB’s official acceptance into the International Monetary Fund’s Special Drawing Rights basket, this informative Economist Intelligence Unit survey details the current state of the Chinese currency and its expected trajectory as an institutional investment and global reserve currency. getAbstract recommends this report to executives looking for a concise yet thorough examination of where the RMB is headed in the future.

Take-Aways

  • The Chinese renminbi (RMB), already a major currency in terms of payment values, will continue its ascent as a rival global investment currency to the US dollar, the euro, the British pound and the yen.
  • A survey finds that a majority of financial executives in and outside China expect a fully convertible and freely traded RMB by 2020, but respondents indicated a longer time frame – by 2022 to 2025 – for the RMB to achieve full investment currency status.
  • While the trajectory of the RMB toward investment status is secure, regulatory and legal barriers currently in place impede its progress.

About the Author

The Economist Intelligence Unit is an independent research and analysis organization.


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