Offshore renminbi deposits and trade settlements have surged in recent months, raising speculation that China is accelerating moves to loosen its ties to the US dollar and create a new global reserve currency.
Total Chinese currency deposits in Hong Kong were Rmb510 billion ($79 billion) at the end of April, five times the level in mid-2010, according to figures from the Hong Kong Monetary Authority, while cross-border trade settlement totalled Rmb134 billion, 13 times the figure posted last July, and nearly 60% of the monthly total trade settlement.
The figures highlight China’s enthusiasm for turning the renminbi into a bona fide international unit of exchange, says Thomas Poon, head of business planning and strategy at HSBC in Hong Kong.
"We are witnessing the birth of a major international currency, and it’s...
