RMBinternationalizationmarksanewstageofcapitalaccount.pptVIP

RMB internationalization marks a new stage of capital account liberalization The purposes of RMB internationalization Reduce exchange rate risks Reduce the increase in Foreign exchange reserves Increase competitiveness of financial institutions Reduce transaction cost of trade To promote capital account liberaliztion Answer provided by a senior central banker “it is too difficult to reach consensus among all parties concerned on how to reform the exchanger rate (regime). Hence, the PBOC looks one way and rows another to promote the use of the renminbi for international trade settlement… Thus i