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.