The European Central Bank'S Consideration Of The Initial Purchase Of RMB Will Be Very Small.

Members of the ECB's Governing Council will hold a meeting in Frankfurt in October 15th to discuss whether preparations for RMB will be included in foreign exchange reserves. People familiar with the matter also revealed that if the European Central Bank decides to buy the renminbi, the initial purchase will be very small, and it may start buying within the first year.

If the European central bank takes the renminbi into its foreign exchange reserves, it will mark an important progress in the internationalization of RMB. According to IMF data, though China It is the second largest economy in the world, but the renminbi accounts for less in foreign exchange reserves. The US dollar accounted for 61% of the total.

According to Bloomberg, officials will assess International Monetary Fund Special drawing rights (SDR) are set up in the form of a basket of currencies consisting of euros, Japanese yen, sterling and US dollars, excluding Renminbi before 2015. China hopes that the renminbi can join the "basket of currencies".

In September of this year, British finance minister Osborn Ma Kai, vice premier of China, announced that the United Kingdom would issue Renminbi denominated treasury bonds and become the first issue country in western countries. Osborn said that with the internationalization of the renminbi, the issuance of RMB bonds will be included in the British foreign exchange reserves. In March this year, the Bundesbank and the Central Bank of China agreed to cooperate in the payment, clearing and settlement of Renminbi.

Today, the former German central bank governor Webb said that the yuan will play a bigger role in the world and the renminbi will appreciate. In February of this year, Yves Mersch, executive director of the European Central Bank, said that considering the size of China's economy and its importance in international trade and finance, the yuan might eventually challenge the US dollar. The authorities and investors need to be prepared, and the renminbi will play a more important role in the future.

An ECB spokesman said the agenda of the ECB meeting was confidential and declined to comment further.