Monday, September 20, 2010

BNM buys renminbi-denominated bonds, says FT

KUALA LUMPUR: Bank Negara Malaysia bought renminbi-denominated bonds for its reserves, marking a significant advance for Beijing's attempts to internationalise the use of its currency, according to the Financial Times.

The newspaper said in on Sunday, Sept 19 the central bank's move is also expected to herald further diversification into Chinese government securities by other Asian countries.

Chinese Chinese policymakers has been pitching the renminbi as a long-term rival to the US dollar.

'This brings the renminbi's credibility to a whole new level,' Dariusz Kowalczyk, a Hong Kong-based strategist at Cr''dit Agricole, was quoted saying by FT.


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