Financial China

Renminbi going global

  • Published 21 Apr 2011

An imperative to prevent inflows of foreign exchange from blowing economic bubbles inside China acts as a strong impetus driving Beijing's campaign to internationalise the renminbi.

Sometimes success becomes unbearable. This is the case with China's foreign exchange reserves, which at end-Q1 rose above $3,000bn (Rmb 19,580bn, £1,830bn, €2,064bn), the rewards from an export powerhouse. The problem is that the ballooning liquidity signified by such large foreign currency inflows is bedeviling attempts by Beijing to prevent bubbles from inflating in the domestic economy.

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