China's RMB to become fourth most-used currency: Report

Unit has become world's second trade finance currency, may replace Japanese Yen as fourth most-used international currency

China's currency Renminbi (RMB) has become the world's second trade finance currency and hopes to become the fourth most-used international currency, replacing Japanese Yen, according to a Chinese University report.

RMB is now the world's second trade-finance currency, fifth payment currency, and sixth foreign-exchange currency, said a report by Renmin University of China.

Hopefully, it will become the world's fourth international currency, replacing Japanese Yen, state-run People's Daily reported citing the report.

Chen Yulu, president of the university, said on 2015 International Monetary Forum that RII (RMB Internationalisation Index) has raised from 0.02 in 2009 to 2.47 in 2014.

Level of acceptance of RMB worldwide is significantly elevated as the RMB cross-border flow reaches 6.55 trillion (more than $1 trillion) in 2014, seeing a rise of 41.6 per cent.

RMB constitutes 2.96 per cent of worldwide trades, seeing a direct investment of 1.05 trillion, the report said.

With progress made in the construction of One Belt, One Road (Silk Road projects) RMB will see a greater surge in market share, it said.