China's currency, the Renminbi (RMB) or yuan, is expected to appreciate by 2 percent to 3 percent against the U.S. dollar in 2013, global banking giant Deutsche Bank (DB) forecast in a recent report.
It estimated that cross-border trade settled in RMB will surge about 30 percent to 4 trillion yuan (635 billion U.S. dollars) in 2013, accounting for 15 percent of China's total foreign trade.
Offshore RMB business will also increase due to potential growth in offshore financial hubs like London, Taiwan and Singapore, the report said.
Chinese policymakers will focus on further liberalizing the capital account in 2013 to ensure adequate liquidity on the offshore RMB market, said Liu Linan, senior strategist with DB China.
The government is also expected to choose clearing banks for RMB business in Taiwan, Singapore and possibly London, said Liu.
RMB fixed-income trading and other RMB business are likely to be introduced in Taiwan in the near future, Liu said.
The RMB gained 23 basis points to 6.2885 against the U.S. dollar on Tuesday, according to the China Foreign Exchange Trading System.
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