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Mark Konyn, chief executive of Asia Pacific at RCM, a company of Allianz Global investors, pointed out that the People's Bank of China has hinted many times that it is looking at diversifying away from the American money in fx trading.
He said: "The long term goal is for China to internationalise its currency. As such, the RMB will be more widely used for both trade and investment."
In his view, it is important to place this pattern in the context of the changing role of reserve currencies, with many national banks recognising the need to diversify their positions.
The RMB, commonly referred to as the yuan, was traditionally pegged to the US dollar, but it was actively devalued to increase the competitiveness of China as a global trader.
Posted by Clive Arneil
