The Prospect of RMB Internationalisation in the Post-Covid World

“This essay is very nicely written and convincingly argued and I agree with the thrust of the author’s argument. It would have been worth noting that even if the preconditions for RMB internationalization are met, that in itself will not guarantee that the RMB becomes a significant reserve currency. History suggests that there is usually a single dominant international currency and that network effects mean that it usually takes a lot to dislodge the hegemonic currency. As well as China satisfying the necessary preconditions, the US probably also needs to do something so that other countries lose trust in the dollar.”

A short excerpt of comments by Professor Charles Bean

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