Now's the time to formulate an RMB strategy
Expect significant inflows into renminbi, now that it is a global reserve currency here.
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
FOLLOWING the announcement in November that the renminbi (RMB) meets the criteria of the International Monetary Fund (IMF) to become a "freely usable" currency, the IMF executive board has now formally decided to include the currency in its Special Drawing Rights (SDR) basket of currencies from October next year.
This came as no surprise to those who have followed China's unprecedented steps to open up its capital markets.
A monumental milestone for the RMB, this event will trigger significant and gradual inflows of funds into the RMB, changing the global currency landscape forever, as central banks, sovereign wealth funds (SWFs) and multilateral institutions recalibrate their balance sheets.
Copyright SPH Media. All rights reserved.
TRENDING NOW
StarHub hands Ensign InfoSecurity control back to Temasek in S$115 million deal, books S$200 million gain
Singaporeans can now buy record amount of yen per Singdollar
Air India asks Tata, Singapore Airlines for funds after US$2.4 billion loss
Keppel DC Reit posts 13.2% higher Q1 DPU of S$0.02833 on strong portfolio performance
