Publication

This paper examines the reasons behind China’s decision to internationalize its currency, the renminbi (RMB), and the nature of the internationalization process Beijing has adopted. The author contends that the decision to bring about the process was triggered by the concerns of Chinese leaders over excessive dependence on the US dollar during the 2008 global financial crisis as well as China’s determination to establish its own modern financial system. The author then argues that the approach towards RMB internationalization that China has adopted means that the country is bringing about a de facto liberalization of its capital account.