RMB internationalization still has a long way to go

The internationalization of renminbi is a complex project and still has a long way to go, a senior International Monetary Fund official has said.

The internationalization of renminbi, also known as yuan, is not only about trade but also the development of renminbi-based financial products, Zhu Min, IMF deputy managing director, told Xinhua during the World Economic Forum here.

"The internationalization of renminbi will bring along a lot of issues and the first one is about the financial products," Zhu said, hinting that there is still a need to increase the number of financial products.

With the financial products come the issues of development of financial market, financial supervision and the financial law system, he said, adding that the renminbi internationalization was a tremendous and complex project.

With regard to the exchange rate of renminbi to the U.S. dollar, Zhu said that it has been floating on the basis of the economic development performance, which he thought was a good thing.

"It is a sign that the exchange rate was based on demand, market condition and economic situations. I think it will become a trend for the development in the future," he said.

Zhu went on saying that there has been a consensus between the IMF and the People's Bank of China that the exchange rates of renminbi should be more and more based on market conditions.