Renminbi Internationalization and Switzerland as an RMB offshore center

China's current global economic relevance strongly contradicts the underrepresentation of its currency in international trade. What are China's ambitions and efforts to internationalize the renminbi (RMB) and what are Switzerland's chances to become an RMB offshore center in Europe?

Pfund, Florian & von Dincklage, Benjamin, 2013

Art der Arbeit Bachelor Thesis
Auftraggebende Credit Suisse AG
Betreuende Dozierende Freiburghaus, Markus
Keywords Renminbi, RMB, RMB internationalization, RMB offshore center, Switzerland, China, Banking
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Over the past decade, China has experienced tremendous economic growth and has become the world's largest exporter and second largest economy behind the United States. Until 2009, beside bond issuances in Hong Kong and limited personal transactions, the RMB could only be used for payments within Mainland China and cross-border trade was settled in hard currencies. China's leaders have taken a number of steps to internationalize the currency and as the RMB's significance increases on a rapid pace, several financial centers are currently vying to become the first RMB offshore center in Europe.
As the subject is still in progress, the underlying research is based on expert interviews, qualitative desk research and secondary literature. The authors had the opportunity to travel to Beijing, China, in order to gather information on site and speak to subject experts. Most contacts to the respected experts have been established by Dr. Urs Buchmann, Credit Suisse Head Corporate & Institutional Clients APAC. The majority of the featured literature was research conducted by well-known financial institutions, respectable news media houses and institutions such as the IMF and SWIFT.
This study aims to provide an overview of the RMB internationalization process and Switzerland's chances to become an RMB offshore center. The key findings show that the internationalization of the RMB has so far been much faster than anticipated, but further economic and financial reform is essential to ultimately establish the RMB as an international currency. Switzerland's chances to become an RMB offshore center are difficult to predict, but Switzerland will certainly play a key role in the RMB business due to the recently signed free trade agreement, an outstanding reputation in China and exceptional banking competences.
Studiengang: Business Administration International Management (Bachelor)
Vertraulichkeit: öffentlich
Art der Arbeit
Bachelor Thesis
Auftraggebende
Credit Suisse AG, Zürich
Autorinnen und Autoren
Pfund, Florian & von Dincklage, Benjamin
Betreuende Dozierende
Freiburghaus, Markus
Publikationsjahr
2013
Sprache der Arbeit
Englisch
Vertraulichkeit
öffentlich
Studiengang
Business Administration International Management (Bachelor)
Standort Studiengang
Olten
Keywords
Renminbi, RMB, RMB internationalization, RMB offshore center, Switzerland, China, Banking