One Currency, Two Markets: China's Attempt to Internationalize the Renminbi ... a Book Launch


Video and presentation slides

The video recording will be made public soon on this webpage. 

The presentation slides are available here.  

About the event

In One Currency, Two Markets: China’s Attempt to Internationalize the Renminbi, Professor Edwin Lai of HKUST analyses the future of the international monetary system and the USD, and the rising importance of the RMB. He highlights the reasons for the unsustainability of the dollar standard in the long run, that China has unique incentives to internationalize its currency, and how Hong Kong could play an important role. He explains the real reasons for China to internationalize its currency, including using external commitments to force financial sector reforms domestically. He uses economic concepts, in language accessible to laymen, to argue that financial development and openness are crucial for RMB internationalization to succeed, and that greater exchange rate volatility is inevitable due to the “open-economy trilemma”. Employing the “gravity model,” the book also predicts that by 2030, the RMB would be a distant third payment currency after the USD and the euro but surpassing British pound sterling. 


This event is jointly organized with Department of Economics, HKUST and Center for Economic Policy (CEP) HKUST.  It will be moderated by Albert Park, Head and Chair Professor of Economics at HKUST.  



About the author 

Edwin L. C. Lai is Professor of Economics at HKUST. He has been Senior Research Economist and Adviser at the Federal Reserve Bank of Dallas, a consultant with the World Bank, and a visiting fellow at Princeton University. He is an associate editor of Review of International Economics and has published numerous papers in leading economics journals.  



About the discussant 

Professor Leonard K Cheng became President of Lingnan University of Hong Kong in September 2013. Prior to joining Lingnan University, he served as Dean of the School of Business and Management of the Hong Kong University of Science and Technology (HKUST Business School) from 2009 to 2013. Professor Cheng’s research interests include applied game theory, market structure, currency crisis, international trade and investment, technological innovation and imitation, and China’s inward and outward foreign direct investment. He has published papers in many leading academic journals in economics, and has served as an associate editor of the Journal of International Economics and Pacific Economic Review.   More >>

To attend the event

It will be a mixed-mode event. You may choose to attend in person or using Zoom.  Please register at the event webpage on the CEP website here

House rules

  1. In the venue, all participants are required to put on surgical masks throughout the event. 
  2. No eating or drinking is allowed inside the venue.
  3. The event will be video taped, live broadcast and recorded.  The video recording will be published online after the event.  
  4. Please be informed of our bad weather policy
  5. Please direct all your enquiries to . 
  6. If you attend the event by Zoom and require assistance during the event, please send an email to .  


About the book


One Currency, Two Markets: China’s Attempt to Internationalize the Renminbi
By Edwin L. C. Lai 
Published by Cambridge University Press
Buy the book here


HKUST IEMS Thought Leadership Brief #58 is authored by Prof Lai on the topic.  



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