The IMF has endorsed the renminbi as a freely usable currency, recognising China’s increased importance in the global financial market. The renminbi’s journey to attaining this status was never straightforward.
The People’s Bank of China wavered on the renminbi’s fixed rate in the first week of 2016, leaving many puzzled as to its stance on the currency and questioning the transparency of its policies.
Large Chinese corporates such as Tencent and Alibaba told CT they would consider investing in certificates of deposit, a cash instrument that China’s central bank made available to corporates last week.