Former central bank governor: Yuan’s internationalisation is progressing

FILE PHOTO: Chinese one yuan coins are placed on 100 yuan banknotes in this 

illustrative photograph taken in Beijing - REUTERS

SHANGHAI (Reuters): The internationalisation of the renminbi has made progress, Zhou Xiaochuan, former Governor of China’s Central Bank, said on Saturday.

“The internationalisation of the renminbi is not a linear progress. It will move faster when there are opportunities to do so. Sometimes, it will move more slowly. But in the longer view, the internationalisation of the renminbi is still promising,” Zhou said at a financial forum in Shanghai.

Zhou said that the development of financial sanctions would have some impact on the US dollar’s use as an international reserve currency and as an international means of payment. Diversification was important for reserve currencies, and the renminbi and other currencies would begin to be considered internationally, he said.

Zhou stepped down in March after 15 years at the helm of the People’s Bank of China.