Study Times, a newspaper of the CCP Central Party School, recently published an article on the importance of the internationalization of Chinese currency (the RMB). The article indicated that China is the only one of the world’s large economies that exclusively uses foreign currencies for international trade settlements. it is mainly China’s surrounding countries that use the RMB. The author expressed the belief that RMB internationalization has a certain level of urgency and that the ultimate goal is to make the RMB a reserve currency. Five action items were suggested: (1) Speed up the “Go Out” strategy and enlarge the scale of China’s investments in foreign countries; (2) Sign more currency exchange agreements; (3) Encourage more international trade settlements in RMB; (4) Issue RMB based bonds; (5) Improve the use of international finance centers such as Hong Kong.
Source: Study Times, April 11, 2011