Authors: Yin-Wong Cheung, Guonan Ma and Robert N. McCauley

The global financial crisis and second round of quantitative easing served to highlight the international financial system’s dependence on the US dollar, a currency subject to national management.

Against this backdrop, a number of recent policy initiatives suggest the Chinese authorities have adopted a proactive strategy to promote the international use of the renminbi — referring to the use of a currency by non-residents to invoice trade, make payments and denominate assets and liabilities. Read more…