“As expected it drew some media attention, with the familiar theme that the renminbi—which surpassed the Japanese yen to become the fourth-most traded currency in the world in August, according to SWIFT's RMB Tracker—will eventually overtake the US dollar as the dominant global currency.
The creation of a renminbi-dedicated cross-border clearing system is one pillar supporting the internationalization of the currency. The crucial one, however, is the opening of China’s capital account, a moving target that includes liberalization of the financial sector and cross-border investment flows.
Outside of China, innovation by financial institutions in developing risk management products to align with current and future renminbi demand will also facilitate the currency's growing use.”
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