Three junctures for the internationalization of the Renminbi (RMB)

Abstract

As China’s economy continues to grow, it is agreed worldwide that the Renminbi (RMB) should play a more important role. “Prudence” has always been the policy style of China. To satisfy the condition, this paper foresees that the process of internationalization of the RMB needs to pass through three stages (junctures). The first would be to establish arrangements for cross-border settlement of transactions in the RMB. The second stage would be to diversify the economic growth model. The final stage would be the development of a financial market to protect against any external shocks.