More policies to support cross-border use of renminbi

"The banks surveyed commented that a growing number of their customers recognize that they can gain a competitive advantage by being able to settle or quote in RMB, and that London banks have adapted and improved their services to make it easier for their commercial customers to settle in RMB," Boleat said in a report.

Meanwhile, the value of RMB foreign exchange products traded in London increased by 150 percent, demonstrating London's strong growth as part of the global RMB market and increasing liquidity.

"The RMB stock and liquidity in London is still not enough to support its role as a major offshore center," Cheng said.

By the end of 2012, the outstanding RMB deposit balance in Hong Kong was more than 600 billion yuan, while in London the amount may be in tens of billions, he said.

According to statistics from the Society for Worldwide Interbank Financial Telecommunication, by January, the yuan has overtaken Russia's rouble to become the world's 13th-largest global payment currency. "The 13th position does not match the status of the yuan as a major international currency," Cheng said.

Although transactions settled in yuan accounted for 8.4 percent of China's foreign trade, globally, yuan payments only accounted for 0.63 percent of the total volume.

The yuan will be welcomed worldwide, he said, as the currency is still in a gradual process of appreciation.

"The internationalization of the yuan cannot be manipulated by anyone. It is in line with a nation's economic strength. "

As a result, he said, there won't be a single dominant currency in the future, but more possibly a more diversified currency structure in the global market.

weitian@chinadaily.com.cn

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