The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

FX: Two sides of the renminbi coin

China is increasingly exposing its currency to the wider world but free convertibility still looks a long way off.

China wants to have its cake and eat it when it comes to the renminbi. Beijing is loosening restrictions on the use of the currency but not so much as to make it fully convertible on its capital account.

China has been elevating the importance of its currency in the international financial system for some time – witness the swap deals it arranged with some Latin American and Asian countries last year to provide liquidity.

Over the past few months, however, the authorities have accelerated their drive to make the renminbi more global. One recent measure includes expanding a pilot scheme to allow cross-border renminbi trade settlement. The global volume of renminbi trade settlement is growing fast, albeit from a low base. Volumes were up about 20 times in the first half of this year compared with the last six months of 2009. A number of banks are holding international roadshows to encourage companies involved in cross-border China trades to settle in renminbi rather than the dollar or euro.

In the capital markets, too, momentum is gathering for the Chinese currency thanks to recent reforms. Qualified investors can now invest onshore in China’s interbank bond market.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree