According to a research report of 15 April, 2016 of Natixis, a French Corporate and Investment Bank created in 2006,
"The PBoC announced that foreign central banks can invest in the interbank bond and fx market in China without any limit. This does not only apply to investments, but also the repatriation of funds1 in RMB or converted into foreign currencies".
"In the long run, foreign central banks holding CNY interbank assets would boost the corporate confidence in CNY assets, as well as China’s interbank bond market and interbank fx market. Together with the recent policy of opening up the interbank bond market to foreign investors by removing the interbank bond market investment quota, we expect there will be more capital inflow into China in the long term".
It's very early days yet but the move signals a vision that one day, the RMB will form a significant part of foreign central banks' assets, alongside with the greenback and other recognized global currencies like the euro, British Pounds and Japanese yen.
Download Foreign central banks can invest in China's interbank bond and fix market wihout limit
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