China Chronology of RMB going global
GOV CN. BEIJING — China’s yuan, or the RMB, was admitted by the International Monetary Fund (IMF) into its benchmark currency basket on Nov 30, the latest step for its journey to internationalization.
The RMB’s inclusion into the Special Drawing Rights (SDR) basket alongside the dollar, euro, pound sterling and yen, came after a flurry of reforms. The following is a chronology of major reforms over the past decade.
— July 21, 2005: China initiated the reforms by depegging the yuan from the US dollar.
— July 22, 2005: The People’s Bank of China (PBOC), the central bank, began announcing the yuan’s closing rate against major currencies on the inter-bank foreign exchange market each trading day.
— May 21, 2007: The yuan’s value was allowed to rise or fall by 0.5 percent from the central parity rate each trading day, from a previous limit of 0.3 percent.
— July 9, 2007: China Development Bank announced it had successfully issued its first dim sum bond — an offshore yuan denominated bond.
— April 8, 2009: Cross-border trade was allowed to be settled in the Chinese currency on a trial basis in Shanghai and Guangdong province.
— July 21, 2009: Four years since the exchange rate reform, the yuan against the US dollar had appreciated by 21 percent.
— July 2, 2009: The PBOC launched a yuan trade settlement pilot project, unveiling detailed measures on how to make transactions using the yuan to settle trade with Hong Kong, Macao and regional trade partners.
— March 24, 2010: A multilateral currency swap agreement — the Chiang Mai Initiative Multilateralization agreement — between China, Japan, the Republic of Korea and the 10-member Association of Southeast Asian Nations came into effect, drawing on a pool of $120 billion .
— Nov 22, 2010: China started direct trading between the yuan and the Russian rouble on the inter-bank foreign exchange market.
— Dec 15, 2010: The yuan started trading in Russia, the first overseas market for the Chinese currency.