RMB Internationalization Has Long Way to Go – A Commentary by Edwin Lai for Hong Kong Economic Journal
The Hong Kong Economic Journal carried a commentary by IEMS’ Edwin Lai on the recent announcement that RMB is set to be included in the IMF Special Drawing Rights (SDR) Basket. While a milestone is a huge positive for the currency, Prof. Lai stated that there remains a long way to go for RMB to be truly internationalized. The major hurdles mentioned include capital controls in China (where the RMB is not fully and freely convertible with other currencies), the country’s immature financal system, and the dominant role of US dollar in international trade.
Read the full article here: Hong Kong Economic Journal
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