KUALA LUMPUR: The Belt and Road Initiative (BRI), China’s mega infrastructure project for the 21st century, is poised to widen the use of the renminbi (RMB), thus further promoting its internationalisation, said an economics professor. "RMB is not yet an international currency due to (China’s) capital control relatively on capital account. Asked how long it would take for RMB to be fully accepted as an international currency, Dr Yeah said: "It would take a while… maybe a couple of decades. Dr Yeah said the Chinase government needed to ease restrictions, allowing RMB to freely trade in the international market and reducing intervention, adding that BRI activities in the long term would have effects and help the note to become an international currency. Despite being the world's second largest economy, China's RMB is still small in global currency trade due to the restrictions on its usage in financial activities.

Source: New Strait Times October 01, 2017 05:03 UTC