RMB Internationalisation
Easing Foreign Investor Access to Mainland China
In 2014, China’s currency – the Renminbi (RMB) – passed several key milestones on its way to becoming an international trade and investment currency. RMB internationalisation is a process whereby the Chinese currency will eventually become fully convertible with other currencies and inward and outward RMB-denominated direct and portfolio investment controls are relaxed. RMB internationalisation, a long-standing objective of the Chinese government, is slowly becoming realised through a program of government-mandated initiatives that include both regulatory and legal reforms, as well as economic infrastructure development. However, the ongoing success of the internationalisation process hinges on the alignment of this state-sponsored change programme with global macroeconomic and market forces driving demand from foreign investors for financial exposure to the Chinese market.
https://research.greyspark.com/2014/rmb-internationalisation/
