ECB gives boost to renminbi

The push to internationalize the renminbi moved up a gear following the announcement by the European Central Bank that it will diversify some of its foreign exchange reserves into the Chinese currency, pointing to growing confidence in the renminbi as a global reserve currency.

The ECB invested 500 million euros ($558 million) of its foreign reserves in renminbi assets during the first half of 2017, reflecting the importance of China as one of the euro zone's biggest trading partners, the central bank announced.

The bank said on Tuesday that the investment in Chinese yuan was made by changing the current composition of the ECB's foreign reserves. The ECB sold a small portion of its US dollar holdings, which remain its largest portfolio, leaving the overall size of the ECB's foreign reserves unchanged.