RMB to be number three international currency by 2020: report

By added on 23/07/2014

The renminbi will become the world's third largest currency after the US dollar and euro by 2020, according to a report by the International Monetary Institute of Renmin University of China and the Bank of Communications, China Times reports.

The report said that the renminbi internationalization index had risen to 1.69 by the end of 2013 from 0.92 a year before.

The main impetus for the internationalization of the renminbi comes from cross-border trade settlement and direct investment.

In 2013, China's cross-border renimnbi trade settlement hit 4.6 trillion yuan (US$759 billion), up 57.5% year-on-year, and renminbi direct investment totaled 534 billion yuan (US$86 billion), up 90% year-on-year.

The institute and the bank have been jointly issuing renminbi internationalization reports annually since 2012.