RMB settlement in cross-border trade

Watch Video>>

The pilot scheme to make it possible for cross-border trade to be settled in RMB is considered a key step in the Chinese currency's bid to go global. But during the process, experts say the RMB has to face a variety of challenges.

The pilot scheme to make it possible for cross-border trade to be  settled in RMB is considered a key step in the Chinese currency's  bid to go global.

Among them, the independence of monetary policies, currency stability and the impact of the flow of international capital. But China's central bank says there won't likely be huge amounts of capital inflow and outflow during the pilot stage. Zeng Siwei has the details.

The internationalization of a local currency means other countries and regions will accept the currency without conditions.

That means the country can get products and services across the world based on its credit and by issuing notes.

But, of course the globalized currency must be stable and should have a strong economy behind it to support it.