UK to issue renminbi bond
The UK is to become the first western country to issue a bond in China’s currency, the renminbi (RMB).
HM Treasury expects the issue of a RMB bond in the coming weeks and months, subject to market conditions. The size of the bond will be confirmed at the time of issuance, but is expected to be worthy of benchmark status in the market.
This will be the first non-Chinese issuance of sovereign RMB debt and will be used to finance Britain’s reserves.
Up to now, Britain has only held reserves in US dollars, euros, yen and Canadian dollars, so the announcement signals the RMB’s potential as a future reserve currency.