1/4
"China has had a long-standing objective of greater 'internationalization' of the yuan - but its mantra on seeking stability would likely trump that for the foreseeable future."
reuters.com/markets/europe…
"China has had a long-standing objective of greater 'internationalization' of the yuan - but its mantra on seeking stability would likely trump that for the foreseeable future."
reuters.com/markets/europe…
2/4
In fact "internationalizing" the RMB means that Beijing must give up control of its capital and current accounts, force down the national savings rate, liberalize the banking system and eliminate policy distinctions between Chinese and foreign financial institutions.
In fact "internationalizing" the RMB means that Beijing must give up control of its capital and current accounts, force down the national savings rate, liberalize the banking system and eliminate policy distinctions between Chinese and foreign financial institutions.
3/4
Beijing won't want to do that any time in the foreseeable future. In fact until it rebalances domestic demand, cleans up the banking system and eliminates moral hazard, internationalizing the RMB would be financially very disruptive.
Beijing won't want to do that any time in the foreseeable future. In fact until it rebalances domestic demand, cleans up the banking system and eliminates moral hazard, internationalizing the RMB would be financially very disruptive.
4/4
Five years from now there will have been little meaningful change in the global status of the RMB, but I expect that the discussion over its internationalization will be as heated as ever.
Five years from now there will have been little meaningful change in the global status of the RMB, but I expect that the discussion over its internationalization will be as heated as ever.
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