Tuesday, June 30, 2015

Not Everyone is Buying the Renminbi Hype.

Earlier this month, the People's Bank of China released The Renminbi Internationalization Report 2015.  The Economic Observer ran a discussion piece (in Chinese) on this issue.  Not everyone is buying the hype.
[Translation:  "At what stage are we at in the process of renminbi internationalization? The People's Bank of China's report does not elaborate. However, we can reference the Renminbi Internationalization Report issued by the International Currency Institute of Renmin University in July 2014. According to that report, the Renminbi Internationalization Index (RII) in 2013 was 1.69. What does that mean? Even though the RII increased 84% in 2013, the U.S. Dollar International Index at 52.96 was 31 times higher than the RII. The similar rating for the euro, Japanese yen, and British pound were 18, 2.52, and 2.54 times higher than the RII. The answer is self-evident: Renminbi internationalization has a very long road ahead."]
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