On Re-starting RMB Internationalization by Guo Kai from the #PBOC, in which he addresses why it is required by #China’s high-quality development goal, and its relationship with capital account opening: cf40.org.cn/uploads/newsle…
RMB internationalization and the orderly opening of the capital account can go hand in hand. The fluctuation of capital flows was not caused by the internationalization of RMB, but the tension within the policy framework.
The key to capital account liberalization is to implement unified management of domestic and foreign currencies and short-term capital flow.
The best approach to opening the capital account is to go with the flow, "open the front door" and "block the back door", and effectively deal with shortterm capital flow.
Only when RMB is internationalized, can China have more say in the management of the exchange rate and capital flow.
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