Renminbi Internationalization: Achievements, Prospects, and Challenges

Meet the next global currency: the renminbi, or the "redback." Following the global financial crisis of 2008, the major monetary policy objective of the People's Republic of China (PRC) is the internationalization of the renminbi; this is, to create an international role for its currency akin to the international role currently played by the US dollar.

Renminbi internationalization is a hot topic, for good reason. It is, essentially, a window onto the PRC government's aspirations and the larger process of economic and financial transformation: making the renminbi a global currency requires rebalancing the PRC economy, developing the country's financial markets and opening them to the rest of the world, and moving to a more flexible exchange rate. In other words, the internationalization of the renminbi is a monetary and financial issue with much broader supra-monetary and financial implications.

This book offers a new perspective on the larger issues of economic, financial, and institutional change in what will eventually be the world's largest economy.

Co-published with Brookings Institution Press. For orders, please contact Brookings Institution Press.