CBRC official: RMB could make up 3% of global reserves

Zhang Guangping, vice-head of the Shanghai branch of the China Banking Regulatory Commission, has said that the renminbi could make up 3% of global foreign exchange reserves by 2020, Reuters reported. His comments were taken as a confirmation of China’s pursuit of the gradual internationalization of the currency. However, Zhang said a series of conditions would have to be met before the renminbi could become an international reserve currency. These include making the renminbi convertible, requiring a more liquid forex market and more developed bond markets and banking system, and proper cross-border capital flow monitoring.