The internationalization of Chinese currency yuan, or RMB, along with a more open capital account, will rebalance the global economy for more sustainable growth, said a report published on Monday.
The internationalization of RMB will also facilitate a more competitive, consumer-oriented economy in China, while firms and investors in the United States and Europe will enjoy new means of diversifying their portfolio investments, as will China's savers, the report found.
The report, entitled "Renminbi Ascending: How China's Currency Impacts Global Markets, Foreign Policy and Transatlantic Financial Regulation", was developed by Atlantic Council's C. Boyden Gray Fellow on Global Finance and Growth, Chris Brummer, and sponsored jointly by the City of London Corporation, Standard Chartered and Thomson Reuters.
"RMB internationalisation is an unprecedented financial event that is irrevocably changing the global market, and presenting an enormous opportunity for both Chinese and the world's business to trade and invest," said Mark Boleat, Policy Chairman at the City of London Corporation.
David Craig, President of Financial & Risk of Thomson Reuters, said: "China is growing -- and internationalizing -- with exhilarating speed. Last year alone, Thomson Reuters saw a 350 percent increase in renminbi trading across our foreign exchange platforms. From our vantage point, at the intersection of currencies, commerce and regulation, it is clear the success of China's currency brings great opportunities for everyone in international commerce."
"The challenge for China now is to build confidence in its regulatory system in partnership with global policymakers and industry. Only by working together will the global economy benefit fully from the re-emergence of China, and the ascent of the renminbi as a major world currency," he added.
