【IMI Working Paper No. 1602 [EN]】Renminbi Internationalisation How the World can Cope with the Change

2016-10-27 IMI

【Abstract】 After the official announcement from the International Monetary Fund (“IMF”) to include Chinese currency in the calculation of the special drawing rights (“SDR”) with a weight of 10.92 percentage, there seems no way out other than trying our best to understand how Chinese financial markets will respond to this paradigm shift and how international stakeholders will manage the change in their best interests. The global financial governance will never be the same after October 1^st, 2016， when the SDR decision takes effect. Speed of light may be an exaggeration to describe the evolution of renminbi internationalization but it is generally agreed that Chinese currency may have been moving too fast whichmay further complicate the complexity of managing the change: adaptation to massive changes in such a short time can be challenging not only in China but also internationally. Stakeholders might try their best to analyse pros and cons, though it might not be so easy all times given the risks of unexpected consequences. However there is no other way but to closely follow up latest developments and try as many simulations as possible to envisage probable scenarios about the future directions, analyse its implications and take appropriate actions. 【Authors】 Yuksel Gormez, Senior Research Fellow of IMI; Senior Economist, The Central Bank of Turkey, Research and Monetary Policy Department Ben Shenglin, Professor and Dean, Academy of Internet Finance of Zhejiang University, and Executive Director of International Monetary Institute, Renmin University of China 【IMI Working Paper No. 1602 [EN]】Renminbi Internationalisation How the World can Cope with the Change

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【IMI Working Paper No. 1602 [EN]】Renminbi Internationalisation How the World can Cope with the Change

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