Growing trade volumes in RMB are providing further pockets of RMB liquidity in global hubs which can be deployed to RMB assets. This internationalisation of the currency is also providing corporates and investors with an ability to diversify their cash and currency positions by providing a credible and liquid alternative.
ANZ Research forecasts the RMB will become a major reserve currency by 2020. Counterfactually, if global central banks were to allocate 5% of their foreign exchange reserves (roughly USD12trn) into RMB today, the foreign currency reserves in RMB would be equivalent to USD600bn. By 2020, institutional conditions of China’s monetary and financial system will meet international standards, and the RMB will also be a candidate of anchor currencies for other regions or countries in their currency baskets. This will further drive demand for RMB investment solutions.
ANZ provides a strong capability both onshore and offshore for corporates to manage their RMB investment needs. In particular, ANZ offers the following investment solutions for customers:
- Term deposits
- At-call accounts
- Structured deposits
- Primary and secondary market RMB denominated bonds
- RMB linked structured products
- RMB FX options
- RMB denominated commodities
- Tailored RMB investment products in various asset classes