China identifies itself as the locomotive of the world economy: with a GDP of almost 7 trillion dollars and a growth of 9%, it is the leading exporter on an international level and the country with the largest reserves in foreign currency. We have seen, in the previous articles that appeared in this Export Section, how its role also as a global investor is growing, not only in Europe but also in developing countries, towards which it is proposed as a reference country and major trading partner .
In contrast to the primates it has won on international markets, the role of its currency does not reflect it: the internationalization of the yuan is still a priority on the Chinese government's agenda.
The measures adopted in order to achieve a gradual liberalization of the Chinese currency are already numerous: swap agreements, bilateral agreements, projects for the settlement of transactions through the use of the renminbi, accompanied by a thriving market of securities denominated in foreign currency and by an increase of deposits in renminbi, which led Hong Kong to establish itself as the main market for the marketing of the yuan, creating the so-called CNH offshore market (from CNY, acronym for the yuan).
The slow appreciation of the Chinese currency feeds the criticisms of the international community, however we find ourselves witnessing the first steps towards the globalization of a currency which within the next few decades is likely to establish itself in the world trade scenario alongside the dollar and the euro: it is therefore too important a market to be ignored.
In this context, Italy represents the third most important exporting country in the euro area and recorded a 44,5% increase in trade with China in 2010. If we want to continue to play a role in this dynamic market and promising, we cannot fail to be interested in the performance of the renminbi, which already represents a great earning opportunity.
Enclosed we report an in-depth study on the yuan and its progress on the path towards globalization.
Attachments: FIRST_Yuan internationalization of a Made in China currency.pdf
