The RMB Internationalization and the Reform of the International Monetary System

The RMB internationalization is one of the major Chinese financial strategies in the aftermath of the global financial crisis. It is driven by an increasing importance of China in the global economy, as well as by its efforts to reform the international monetary system. The paper examines to what extent the RMB is used internationally and outlines the major steps taken from the policy point of view. The Chinese government reaffirms its decision on financial opening and on domestic financial reform, being committed to make the RMB fully convertible by 2020. The author concludes that such forward-looking policy steps, along with the RMB flexible exchange rate, will reshape the Chinese economy and its role within the world economy.