Sri Lanka’s central bank has given approval for the renminbi to be used in cross-border banking transactions, in a move that underscores the growing internationalisation of the Chinese currency as well as the close ties between the two countries.
The central bank said its monetary board had agreed to allow the use of the renminbi in international banking deals because it would “significantly facilitate” the growing volume of trade and investments between Sri Lanka and China.
“China is recognised today as the world’s second-largest economy, while also being a leading player in international trade, investments and foreign reserves. It also enjoys extensive economic connections with many countries; as a result the renminbi has been gradually evolving as a globally accepted currency,” the bank said.