ECB to Hold RMB as a Reserve Currency

If your looking for reasons why the RMB has strengthened this year look
no further than the European Central Bank whom is now buying the currency

The ECB invested €500m of its reserves in renminbi- denominated assets
during the first half of this year, reflecting China’s importance as one
of Europe’s largest trading partners, the bank said on Tuesday.

While the €500m amount is just a sliver of the ECB’s €68bn forex reserves,
the purchase of renminbi assets reflects the growing acceptance in Europe
of China’s status as a global economic superpower. That number is sure to
grow in the future and could one day

The ECB is the most powerful central bank to date to invest in renminbi.

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