China plans global role for renminbi

By Peter Garnham

Published: July 14 2009 20:00 | Last updated: July 14 2009 20:00

China has kick-started a major plan to internationalise the renminbi and the process is likely to be faster than many expect, according to HSBC.

If successful, this could lead to nearly $2,000bn in annual trade flows, or as much as 50 per cent of China’s total, being settled in renminbi each year by 2012, compared with less than 10 per cent today.

The move follows calls by China for the world to adopt a supranational currency to replace the dollar.

“China is beginning an ambitious scheme to raise the role of the renminbi in international trade and finance and to reduce reliance on the US dollar,â€