Renminbi Internationalization: Achievements, Prospects, and Challenges

Publication | February 2015

This book surveys the potential and implications for the global economy as the People’s Republic of China pursues its objective of internationalizing its currency.

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.


  • Preface
  • Introduction and Overview
  • Part I. The Context
    • Will History Repeat Itself? Lessons for the Yuan
    • How Far Can Renminbi Internationalization Go?
  • Part II. The Implications
    • Global Ramifications of the Renminbi’s Ascendance
    • The Rise of the Redback: Evaluating the Prospects for Renminbi Use in Invoicing
    • The Renminbi and Exchange Rate Regimes in East Asia
  • Part III. The Process
    • The Role of Offshore Financial Centers in the Process of Renminbi Internationalization
    • Regional Settlement Infrastructure and Currency Internationalization: The Case of Asia and the Renminbi
    • Are the People’s Republic of China Financial Markets Deep and Liquid Enough for Renminbi Internationalization?
  • Part IV. The View from the People’s Republic of China
    • Paths to a Reserve Currency: Renminbi Internationalization and Its Implications
    • The Benefits and Costs of Renminbi Internationalization
  • Contributors
  • Index

Additional Details

  • Finance sector development
  • China, People's Republic of

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