The renminbi is the official currency of the People’s Republic of China. The name literally means “people’s currency”. “Renminbi” or RMB, is also called the Chinese Yuan or CNY, and the CNH when traded offshore. Whichever name it answers to, one thing is certain: the RMB is here to stay, and it’s changing the way the world does business.
In 2005, the value of the renminbi was pegged to the U.S. dollar. Since 2006, the renminbi exchange rate has been allowed to float in a narrow margin around a fixed base rate determined with reference to a basket of world currencies. In March 2011, the Former Premier Wen Jiabao said that China would continue to gradually increase the flexibility of its exchange rate. In August 2011, Vice Premier Li Keqiang started launch ceremony of RMB sovereign bonds in HK. In September 2013, Li Keqiang, who took over as Premier in March, vowed to overhaul state-dominated financial institutions, liberalise interest rates and eventually make the renminbi freely convertible in a sweeping restatement of the newly installed government’s economic reform agenda. He said his government intended to take “gradual and active steps towards market-based interest rates and the exchange rate of the renminbi,” and “gradually achieve full convertibility of the renminbi under the capital account”.
Rani Jarkas, a world-renowned entrepreneur and a banking expert, said in his keynote presentation, “I truly believe that China is positioning the renminbi to become the world’s next reserve currency by gaining a wide distribution of the renminbi, replacing the dollar in terms of trade between many countries, and adding more countries to that list as time goes by. As China’s economic rise continues, so too does its desire to have an internationally recognised and utilised currency. I firmly believe that the Renminbi will become a competitive reserve currency within the next 5 years.”
Rani Jarkas, the Chairman of Cedrus Investments.
Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas