There seems to be something of an inevitability about the renminbi's rise to reserve currency and global dominance. However, there are mutterings that this ascents will be curtailed by China's development model, corporate governance and financial system.

Transaction banking’s increased prominence in the global financial landscape has been well documented, but its increased standing has created issues as well as openings for market participants. Its rise in popularity has led to more competition, while the impact of macro-economic conditions, higher customer expectations and an unprecedented regulatory burden has made it increasingly tough just to stay in business. At a recent round table hosted by The Banker , a panel of industry experts discussed the challenges and opportunities faced by today's transaction bankers. The event, part of an ongoing series, was sponsored by Royal Bank of Scotland, but independently written and edited.

The renminbi is on a path to becoming an international currency, and the first step of the journey is for the Chinese currency to be used to settle trade payments. As businesses begin to see the benefits of using renminbi for trade settlement, banks are competing to make their mark on this growing business.

Global currency markets have become increasingly volatile as European policy-makers struggle to resolve the sovereign debt crisis and emerging economies try to limit currency rises at the same time as taming inflation. Traditional safe haven countries have been prompted to take historic action in a bid to stem currency appreciation and support exports. But are there any safe havens any more?

Most African currencies are in demand thanks to high rates of economic growth across the continent. Analysts foresee this trend continuing over the next decade, with foreign inflows pushing up foreign exchange trading volumes in many African countries.

New regulations, specifically the push towards central counterparty clearing, are having a huge impact on banks' over-the-counter foreign exchange operations. As the banking sector undergoes significant changes, what will this mean for banks' organisational structures and the foreign exchange market?