The China-Canada agreement on establishing North America’s first offshore renminbi center in Canada accelerates the process of the Chinese currency’s internationalization, said a Canadian expert.
“We should prepare to see the RMB to be much more widely used to become an international currency,” said Domenico Lombardi, an expert on global economy from Canada’s think tank Centre for International Governance Innovation’s global (CIGI).
The establishment of the RMB center symbolizes a key development in the process, Lombardi said in a recent interview with Xinhua. It will help deepen the bilateral relationship between China and Canada, the expert added.
On Nov. 8, Canada and China agreed to a set of measures to support the increased use of the RMB in trade, commerce and investment between the two countries.
This agreement, said Lombardi, means that it will be much easier to reduce the business transaction cost between the two countries, as businesses will not need to convert their Canadian currency into the US dollar to transact in RMB.
It shows that Canada will be developing a more meaningful and direct economic relationship with China without the intermediate of the United States, the expert said, adding it is not just an important economic achievement for Canada, but also a political one.
Meanwhile, Lombardi highlighted the importance of a multi-polar international currency system, saying “what is we are going to see is a multi-polar system, with the (US) dollar then obviously two or three currencies largely used. And the RMB no doubt is going to be one of those.”
Full article: China-Canada deal means key move of RMB internationalization: expert (Want China Times)