The Chinese renminbi is now part of the central bank’s gross international reserves, underscoring China’s growing role in the global economy.
The Bangko Sentral ng Pilipinas said the RMB’s inclusion in the GIR started October 13, following its addition to the IMF’s basket of currency early this month.
In its decision to include the RMB in the GIR, BSP Governor Amando Tetangco said the policy makers took into consideration the “rising economic and financial importance abroad of China that is expected to increase the use of the said currency.”
The RMB, also known as yuan, was the firth most active currency used for global payments by market value in July 2016, with a share of 1.9 percent, up from 1.7 percent the previous month, according to global transaction service provider SWIFT, which tracks the most actively used currencies globally.
The yuan’s inclusion in the GIR will ensure that the country has enough supply of RMBs to meet demand from local businessmen, the BSP said.
The GIR is currently dominated by the dollar, and includes the IMF’s special drawing rights, as well as gold. It reached a record $85.9 billion last month.
The country’s trade deals with China is rising in the last five years. Government data showed exports to China rose nearly 9 percent to $6.2 billion last year from $5.7 billion in 2010. Imports, meanwhile, more than doubled to $11.5 billion during the same period.