Competing for Renminbi: Financial Centers in the Context of Renminbi Globalisation

Abstract

Internationalization of Renminbi is a clear policy and an irreversible direction of the Chinese government. The use of Renminbi as a global payment currency is growing rapidly. Meanwhile, financial centers are spotting the potential offered by Renminbi to improve their competitive positions in the post financial crisis era. Major financial centers are making aggressive moves to gain market share in lucrative Renminbi trading. This chapter is an attempt to understand how Renminbi, as a non-freely-convertible currency, is being internationalized and how major financial centers are competing for Renminbi-related businesses. In addition, the chapter tries to comprehend the difficulty in internationalizing Renminbi.