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RMB Internationalisation

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Abstract

China’s growing economic weight in the world economy is the fundamental driver for RMB internationalisation. The rationale behind this includes the drawbacks of the current international monetary system, the benefits for Chinese enterprises and financial institutions, and the intention of inviting foreign pressure for domestic reform.

The use of the RMB began in cross-border trade and investment, and soon expanded to offshore markets and financial transactions. It has also become a foreign reserve currency held by some central banks. The RMB’s future depends on many conditions, including the pace of China’s capital opening, exchange rate flexibility, domestic financial market development and market acceptance.

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Authors and Affiliations

  1. http://link.springer.com/referencework/10.1057/978-1-349-95121-5

    Gao Haihong

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  1. Gao Haihong
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Correspondence to Gao Haihong .

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© 2018 Macmillan Publishers Ltd.

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Haihong, G. (2018). RMB Internationalisation. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_3042

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