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10 Feb 2015
Chinese firms may wish their trade with Australian firms to be settled in renminbi - RBA Governor Stevens
FXStreet (Mumbai) - Reserve Bank of Australia (RBA) Governor Glenn Stevens said at the launch of the Bank of China as the official Yuan clearing bank in Australia, that Chinese companies operating in Australia may wish their trade with Australian firms to be settled in the Yuan.
Key Quotes:
"This is important, because over the long run, Chinese firms may increasingly wish their trade with Australian firms to be settled in renminbi. To be sure, today the bulk of global trade is settled in US dollars. But with China now a very large trading nation, and continuing to grow into a 'continental sized' economy, it would be surprising if at some point we do not see much more use of China's currency for trade purposes,"
"The Chinese authorities have indicated that they intend to continue renminbi internationalization and capital account liberalization in the coming years. As a result, the opportunities for Australian and Chinese investors to invest in each other's financial markets could grow significantly in the coming years"
Key Quotes:
"This is important, because over the long run, Chinese firms may increasingly wish their trade with Australian firms to be settled in renminbi. To be sure, today the bulk of global trade is settled in US dollars. But with China now a very large trading nation, and continuing to grow into a 'continental sized' economy, it would be surprising if at some point we do not see much more use of China's currency for trade purposes,"
"The Chinese authorities have indicated that they intend to continue renminbi internationalization and capital account liberalization in the coming years. As a result, the opportunities for Australian and Chinese investors to invest in each other's financial markets could grow significantly in the coming years"