Now, Zeti said the usage of renminbi in Malaysia has grown rapidly, with the daily size of renminbi foreign exchange volume at 6.7bil renminbi.
“This will contribute towards greater economies of scale over time. This would in turn enable the transactions to be conducted in the most efficient and cost effective way,” she said in her keynote address at the HSBC Reminbi forum, “Renminbi and China’s global future”.
Zeti added Malaysian institutions and corporations such as Khazanah Nasional, Cagamas, Axiata and Maybank have issued renminbi bonds.
“With the various renminbi financial infrastructure that have been put in place to support trade, investment and financial flows between Malaysia and China, this trend is expected to increase,” she said.
According to Zeti, Malaysia was one of the earliest countries to recognise the potential role of the greater cross-border use of renminbi.
“Given China’s significance as Malaysia’s largest trading partner, the settlement of trade and investment in renminbi significantly lowers costs and promotes greater cross-border trade and investment activity.
“In turn, fund-raising activity in renminbi has become a means for Malaysia to utilise the renminbi liquidity obtained through trade settlements,” she said.