Are we all going to be trading in our Benjamins for the Chinese yuan soon?
Talks about a global currency have been in the works for years, but recent talks about China’s aggressive plans to globalize their currency, the RMB (renminbi), or yuan, have international companies taking another look.
According to Business Without Borders, China is the world’s second largest economy, but their money is ranked far behind other world currencies. The Chinese RMB is No.14 most used, far behind the Euro, which ranks No. 1, and the US dollar, No. 2.
But apparently that will not be for long. The internationalization of the RMB is fast approaching. Last year, in just 9 months, the RMB leaped 6 spots in rankings of world currencies, from 20th to 14th, according to SWIFT (Society for Worldwide Interbank Financial Telecommunication).
Chris Davies, Deputy CEO of HSBC China, said, “At some point in the next decade to come, the RMB will be a major player among global currencies.”
Now that China is upping their game, the question is, how realistic is this transition, from using multiple world currencies to a single global currency? Only time will tell.
Theresa Dinh is a Staff Writer for GlobalGrind. Workamaniac. Southern Girl who just can’t get enough of spicy food, shiny black leggings, and Chris Hedges. Follow her on Twitter @iamsethera