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.
Since the central bank dramatically changed the way it values the dong, treasurers have been warned to become proactive about monitoring and managing new risks associated with it.
Banks disagree on the foreign exchange implications of the PBOC’s announcement of a wider renminbi trading band, but advise SMEs to switch to invoicing in renminbi.
The European debt crisis has deepened with Spain's borrowing costs surging and Greece unlikely to meet conditions of its aid package, which Asian currencies will be worst affected over the next year?