Renminbi Internationalization and Switzerland as an RMB offshore center

Abstract

Over the past decade, China has experienced tremendous economic growth and has become the world's largest exporter and second largest economy behind the United States. Until 2009, beside bond issuances in Hong Kong and limited personal transactions, the RMB could only be used for payments within Mainland China and cross-border trade was settled in hard currencies. China's leaders have taken a number of steps to internationalize the currency and as the RMB's significance increases on a rapid pace, several financial centers are currently vying to become the first RMB offshore center in Europe.