Attention Economy


Saturday, December 12, 2015

Chinese Renminbi and the Global Monetary System

A well-written piece by economist Paola Subacchi:
“It is important to note, however, that China’s leaders do not seem to be angling for the renminbi to replace the dollar as the dominant international currency. Their approach – based on the belief that a more diversified, and thus more liquid, international monetary system would contribute to a more balanced and less volatile global economy – is more pragmatic. Anticipating a shift from a dollar-based (and, more broadly, US-dominated) system toward a multi-currency, multipolar system, China’s leaders are laying the groundwork for their country (and its currency) to grasp one of the positions at the top, alongside other great powers.”

PBOC to calculate daily reference rates based on a basket of currencies rather than just the US dollar:

Related:
Chinese currency to be added to the IMF SDR basket -

Implications of Renminbi's addition to the IMF's SDR basket
http://www.cnbc.com/2015/11/28/imf-expected-to-include-yuan-in-sdr-currency-basket.html