China is expected to introduce further cross-border measures to ramp up the liberalization of the capital account and the renminbi exchange rate, according to a senior bank executive.
Yue Yi, vice chairman and chief executive of BOC Hong Kong (Holdings) Ltd. (BOCHK, 02388.HK), told the Hong Kong Economic Journal he expects the renminbi to become one of the world’s three major currencies sooner rather than later.
Nine of 12 banks surveyed by HKEJ said that could happen in 2020 but BOCHK sees it coming in two years.
Measures are already in place, they said.
These include the launch of dim sum bonds, the renminbi qualified foreign institutional investor scheme, mutual recognition of funds and Shanghai-Hong Kong Stock Connect, as well its upcoming Shenzhen counterpart.
All but four major capital account items have been opened up fully or partially, indicating a freely convertible Chinese currency is not far off, he said.
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