RMB Internationalization

In this presentation, QGM examines the potential of China’s currency, the Renminbi (RMB) to become a global reserve currency.  The functions and history of reserve currencies, impacts on monetary policy by analyzing the Triffin Dilemma and Mundell-Fleming Model, and outlooks for Chinese policy are analyzed.  Ultimately, the three stages that China needs to take in order to successfully boost the RMB as an international reserve currency are: commercialization the RMB, changing its economy structurally to favour domestic consumption over exports, and financially liberalizing the RMB.

Full Presentation Internationalization of the RMB