The stabilization of offshore RMB (CNH) deposits and the rise in trade settlements in RMB are among the indications for the popularity of the Chinese currency.
RMB trade settlements have been growing after hitting a low of 12.5% of China’s total trade in December 2016. In April 2018, the figure rebounded to 14.6%, which is expected to be higher going forward, as more Chinese organizations intend to direct more trades in RMB rather than U.S. dollar. In addition, China is pushing crude oil trade settlements in RMB (perhaps initially with Russia and Angola), which could give RMB internationalization a boost.
Stronger RMB against other currencies is likely the final result of the Chinese government’s long-term objective of RMB internationalization.
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