In the speech “RMB Off-Shore US Market”, Dr. Huang reviewed the overall RMB internationalization progress, and currents and prospects of RMB in the U.S. “2016 has been a very fruitful year for RMB internationalization with many milestones”, said Dr. Huang, “For the first time, PBOC granted $250 billion for RMB Qualified Foreign Institutional Investor (RQFII) in the U.S. and designated a RMB clearing bank in the US—Bank of China New York Branch.”
However, the current magnitude of U.S offshore RMB businesses is still far from matching up with the Sino-U.S close economic and trading relationship, said Huang. In 2015, the total Sino-U.S trade volume has reached $626.8 billion, and in the first half of 2016, the China’s outbond direct investment amount has reached $18.4 billion. “In the internationalization process of major developed countries’ currencies, nearly 50% of the trades were denominated in domestic currencies. However, in 2015, only 26% of China’s trade was denominated in RMB. There should be a huge room for the RMB development in trade settlements”, said Huang.