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Developments in Renminbi Internationalisation

Author

Listed:
  • Alexander Ballantyne

    (Reserve Bank of Australia)

  • Megan Garner

    (Reserve Bank of Australia)

  • Michelle Wright

    (Reserve Bank of Australia)

Abstract

The ‘internationalisation’ of the Chinese renminbi (RMB) is proceeding at a measured pace, with a sequence of reforms designed to increase its use in international trade and investment. Over the longer term – as the exchange rate becomes more market determined and as capital account liberalisation progresses – the RMB has the potential to become a major global currency. This article builds on the work of Cockerell and Shoory (2012) by describing developments in the onshore and offshore RMB markets, and the linkages between them, over the past year. In light of China’s position as Australia’s largest trading partner, the article also discusses the implications of these developments for Australian firms, drawing on the results of a survey conducted for the inaugural Australia-Hong Kong RMB Trade and Investment Dialogue in April 2013.

Suggested Citation

  • Alexander Ballantyne & Megan Garner & Michelle Wright, 2013. "Developments in Renminbi Internationalisation," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 65-74, June.
    • Handle: RePEc:rba:rbabul:jun2013-08
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2013/jun/pdf/bu-0613-8.pdf
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    References listed on IDEAS

    as
    1. Lynne Cockerell & Michael Shoory, 2012. "Internationalising the Renminbi," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 77-90, June.
    2. Barry Eichengreen, 2013. "ADB Distinguished Lecture Renminbi Internationalization: Tempest in a Teapot?," Asian Development Review, MIT Press, vol. 30(1), pages 148-164, March.
    3. Bank for International Settlements, 2011. "Currency internationalisation: lessons from the global financial crisis and prospects for the future in Asia and the Pacific," BIS Papers, Bank for International Settlements, number 61.
    4. Dena Sedeghian & Graham White & Patrick D’Arcy, 2013. "Macroeconomic Management in China," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 11-20, June.
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    Cited by:

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    2. Ronald Ian McKinnon & Gunther Schnabl, 2014. "China's Exchange Rate and Financial Repression: The Conflicted Emergence of the Renminbi as an International Currency," CESifo Working Paper Series 4649, CESifo.

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