Rani Jarkas: Yuan’s Internationalization, Improvement of Global Monetary System
The People’s Republic of China (PRC) made it through a new milestone in its persisting efforts with regard to internationalization on November 30, 2016 when it was announced by the IMF that the RMB was given the approval to join Special Drawing Rights basket.
Not only will the addition help financial reforms in China, but the evolution of the international financial system, according to Zhang Tao, the new Deputy Managing Director of the IMF.
Mr. Rani Jarkas strongly believes that Yuan will be competing firmly with all other currencies so it can become a major currency sooner or later and contribute its bit to the global monetary system in a great way.
Data from the Society for Worldwide Interbank Financial Telecommunications show the Yuan is the second-largest trade financing currency, and the fourth- or fifth-largest trade payment currency. And the proportion of yuan is 8% in global trade, and around 2% in global trade payment.
And statistics from the Bank for International Settlements reveal the yuan’s share in global foreign exchange trade has gone double in the last three years, from 2% to 4%. Its share as a global reserve currency is, in fact, somewhat more than 1%.
Cedrus Investments’ Chairman Mr. Rani Jarkas, who is an investment leader with several years of financial experience under his belt in Asia, commented, “As expected with our recent forecast, this is the start of major internationalization of the RMB (the official currency of China).