from International Institutions and Global Governance Program and Greenberg Center for Geoeconomic Studies

The Internationalization of the RMB

Opportunities and Pitfalls

October 31, 2011


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Monetary Policy

Capital Flows


China is making swift strides toward internationalizing its currency, the renminbi, but it must be careful when sequencing these changes. Without the proper reforms, wide-open Chinese financial markets would be vulnerable to massive flows of foreign capital that could send China into the throes of financial crisis. In this Center for Geoeconomic Studies Working Paper, produced in association with CFR’s International Institutions and Global Governance program, Professor Takatoshi Ito examines the progress of the renminbi’s march toward international status and evaluates the possible paths forward.