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Adding RMB to SDR to benefit Hong Kong’s offshore RMB business: Official

The IMF has formally announced that the renminbi will join the SDR, following the U.S. dollar, the euro, the the British pound and the Japanese yen as the fifth SDR basket currency.

The Hong Kong government’s Secretary for Financial Services and the Treasury, K C Chan, says the inclusion will be a very important milestone in the currency’s internationalization process.

SOUNDBITE(CHINESE) K C CHAN, HK Secretary for Financial Services and the Treasury
“The measure means more acceptance of the renminbi as a trading and investment currency. It will also increase demand for the renminbi offshore products in Hong Kong and boost development of Hong Kong’s offshore renminbi market. Besides Hong Kong, the renminbi business in London and some other places also recorded rapid growth in recent years. We hope Hong Kong can play an important role to connect global business together.”

Chan says Hong Kong has a unique advantage as an offshore renminbi center.

SOUNDBITE(CHINESE) K C CHAN, HK Secretary for Financial Services and the Treasury
“As an international financial center, Hong Kong holds a prominent position compared to the mainland market, while for the overseas market, Hong Kong enjoys close economic and trade ties with the Chinese mainland.”

The Hong Kong government has done a series of overseas roadshows in the past few years to promote the city’s advantages as an offshore renminbi center.

Chan says a new round of roadshows will be launched later, with the renminbi included in SDR as highlight.

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