Yuan remains steady in long run

CNC
Added On July 17, 2017

A recent report shows that the upward trend for the Chinese currency's internationalization is unchanged. 
 
The internationalization of the Chinese currency, the yuan or the renminbi, remains steady in the long run, despite a temporary setback last year due to a volatile exchange rate and capital outflow. 
 
That's according to a report from the International Monetary Institute of the Renmin University of China. 
   
The RMB International Index (RII) came in at 2.26 in the last quarter of 2016, down 29.8 percent year on year.
   
But the Institute said that the retreat will not change the long-term upward trend.
   
The temporary setback is mainly due to the yuan's weakening role in cross-border settlement amid flagging global trade and investment. 
 
According to the Institute, the long-term bullish stance on the yuan's internationalization is based on the country's financial reforms and opening up, a solid national economy, and outward-looking strategies including the Belt and Road Initiative.