RMB internationalization benefits world (People's Daily Overseas Edition)14:28, October 12, 2011 Edited and Translated by People's Daily Online The internationalization of the RMB has become the core of China's global financial strategy and generated heated discussion both at home and abroad. At present, London, Singapore and other international financial metropolises are competing to become the second offshore RMB center. Offshore RMB business expanding worldwide Offshore RMB business, which refers to RMB-denominated business conducted outside the Chinese mainland, is expanding worldwide thanks to the gradual internationalization of the currency. Furthermore, Nigeria, Chile, Malaysia, India and other countries recently said that they are considering including the RMB in their foreign exchange reserves. "We are looking at anything to start with from 5 to 10 percent of our reserves," said Lamido Sanusi, governor of the Central Bank of Nigeria. According to the Monetary Policy Report of September 2011 issued by the Central Bank of Nigeria, the country's foreign exchange reserves amounted to more than 30.4 billion U.S. dollars, with 0.3 percent, or 91.3 million U.S. dollars, invested in RMB. Jaspal Singh Bindra, Standard Chartered PLC's top executive for Asia, sees the internationalization of the RMB as a major step for China to further integrate itself into global financial markets and to obtain more trade resources. The RMB's internationalization has provided investors and financiers worldwide with a new choice and boosted the ties between China and the global economy. The transition of RMB to an international reserve currency meets the development needs of both China and the world, but it will be a relatively long process. Developing offshore RMB business is a wise step in this process. Mainly depends on acceptance from market Because RMB offshore business is developing rapidly, predictions about the timetable for RMB internationalization are also appearing. While writing an article for the Financial Times, Arvind Subramanian, a senior researcher from the U.K.-based Peterson Institute for International Economics, said that the RMB will turn into a major reserve currency of the world in 10 years or a little longer period. In the World Economic Forum held in the summer of 2011 in Dalian, the new International Monetary Fund Vice President Zhu Min said that the RMB will turn into a major reserve currency and then the unstable triangle of the U.S. dollar, euro and Japanese yen will evolve into a stable quadrangle, and that will be good for the stability of the global monetary system. Zhu said that the free use of the RMB must be strengthened before it joins the Special Drawing Rights, which are supplementary foreign exchange reserves. The RMB trade financing is developing fast and the amount financed has exceeded 1 trillion yuan. Therefore, there must be investment products that are valued in RMB. Without this kind of investment products, it will be hard to invest and use the RMB. RMB internationalization will be a very long course, but its current overall development direction is correct. People's Bank of China President Zhou Xiaochun said in Washington, D.C. on Sept. 24 that RMB internationalization mainly depends on acceptance from the market not the subjective wishes of any individual. Based on this, China will continue promoting reform and opening, and maintain stable and rapid economic growth to encourage more market participators to use the RMB.