China’s global future

China has made strong progress in encouraging the international use of its currency, according to Stuart Gulliver, HSBC Group Chief Executive. Speaking at a conference in Hong Kong, Mr Gulliver said that he expected the renminbi (RMB) to become increasingly important to the global financial system.

He said: “Since 2010, renminbi trade settlement has risen from near zero to 22 per cent of China’s total trade, and we expect it to top 50 per cent by 2020. In 2014 the renminbi broke into the top five payment currencies in the world for the very first time. And several central banks already hold the renminbi in their reserves.”

I personally believe we will move to a system where there are three reserve currencies

Mr Gulliver noted that the Chinese authorities were continuing to carry out reforms to enable the use of the RMB for trade and investment. He expects that this will accelerate the country’s integration with the global economy, making it easier for foreigners to invest in China, and for Chinese companies to invest overseas.

The renminbi is unlikely to overtake the US dollar as a global currency, Mr Gulliver suggested, but it would increasingly represent a viable alternative. “I personally believe we will move to a system where there are three reserve currencies – the US dollar, renminbi and euro – and that it is naive to believe that the renminbi will replace the US dollar. Instead, I believe we will have a three reserve currency system.”

Did you find this page useful?

Why didn't you find this page useful?

Thank you. We appreciate you taking the time to give us feedback.


Cloudy now, brighter later

Why solar panel installation is set to bounce back after the short-term shock of coronavirus.

A sign saying “we are closed” hangs in the window of a shop

Global GDP set to fall further

Emerging markets are increasingly vulnerable to the impact of COVID-19, says HSBC’s Janet Henry.

A man is taking part in a teleconference while sitting at a table in his home

Reimagining insurance

The insurance industry must learn and adapt as it helps communities affected by COVID-19.