Publication

The author discusses China’s move to internationalize the renminbi (RMB) as a result of the 2010-2011 global financial crisis. It signed several bilateral currency swap agreements, expanded settlements of cross-border trade transactions in RMB and allowed new forms of RMB operations in the Hong Kong offshore market. The author argues that the main obstacles to the further internationalization of the Chinese currency include the lack of exchange rate flexibility and limited access to capital markets.