Several countries recently participated in a conference to discuss the use of the Chinese Renminbi currency in Caricom countries. The conference, which was held at the Hilton Resort Barbados on July 10, was facilitated by the Caribbean Development Bank (CDB).
The conference was centred around discussing the deepening investment cooperation between China and the Caribbean, and how the use of the Renminbi could enhance trade facilitation, finance, banking relationships, and tourism.
The focus of the conference was that where there is a large Chinese presence in any of the CARICOM States, however, while this move was not approved, it is the direction in which Caribbean countries will go in the near future.
According to reports, this was a conference to look at the issue and at an appropriate time once a decision is made, then the details will be fleshed out.
Renminbi is now an International Monetary Fund (IMF) reserve currency. As an IMF reserve currency, the Renminbi is now in the IMF’s special drawing rights (SDR) basket, which determines currencies that countries can receive as part of IMF loans.
The other currencies in the basket are the U.S. dollar, the Euro, the Yen and British pound.