The US dollar faces a new – and really big – kid on the block.
Most indicators and financial analysts observe the recent rapid expansion of Renminbi (RMB)-denominated trade to be a reflection of the growing clout of China’s economy in the world1. While the “internationalisation of RMB” features in most analyses2, the official voices of China have been rather reticent in using this term. Even the need for internationalising the RMB has not been adopted as official policy3.
On the one hand, the use of RMB has expanded by leaps and bounds in trade settlement in offshore financial centres with the support of the Peoples’ Bank of China, while discussions in China are still addressing the basic issue: can the internationalisation of the RMB be expected to benefit China?
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