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.