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      Economy

      RMB as reserve currency good to LatAm, says Argentine expert

      1
      2015-09-24 16:32Xinhua Editor: Mo Hong'e

      If the Chinese renminbi (RMB) became an international reserve currency, it would facilitate trade and investment in Latin America, said Argentine expert Matias Carugati.

      Carugati, head economist of a consultancy Management & Fit, told Xinhua in an interview that it would have "concrete, long-term benefits" if the RMB was a reserve currency because it could ease trade and investment with China.

      In 2014, direct investment from China to Latin America totaled 98.9 billion U.S. dollars, according to the Chinese Ministry of Commerce.

      Last Friday the People's Bank of China authorized the Industrial and Commercial Bank of China to act as a clearing bank for RMB transactions in Argentina.

      Carugati said this move made the RMB closer to a reserve currency.

      "As more such agreements are signed with countries and regions around the world, the RMB will become more and more influential and the International Monetary Fund will accept it some day in its basket of reserve currencies," he added.

       

        

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