RMB's role as international option grows

Deals highlight currency's expanding use in commodity trade pricing, settlement

The renminbi is starting to gain ground in the dollar-dominated global commodity trade, as recent deals highlighted the Chinese currency's expanding role in offering a diversified option for pricing and settlement, economists and executives said.

Breakthroughs in RMB-denominated commodity transactions, regarded as one of the most difficult frontiers for the RMB's global use, may signal a faster phase of the currency's internationalization, as demand rises for alternatives to the US dollar and China's role in global trade grows, they added.

The RMB ranked the fifth in global payments with a share of 3.1 percent in March, up from a sixth ranking in February, as calculated by global financial messaging services provider Swift.