China's RMB project making steady progress

As China steps up efforts to graduate to a leading role in global currency markets, India faces a choice between aligning with the Western-dominated financial system and the Chinese one

Shyam Saran

(Photo: Bloomberg)

Through various columns in this paper, I have followed developments in the internationalisation of the Chinese currency, the Renminbi (RMB). An update on the subject may be of interest since there have been several significant developments in the recent past, most importantly, the Ukraine War, the sweeping and unprecedented American sanctions against Russia and the resulting turmoil in the global energy markets.
The US’ weaponisation of its domination of international financial and currency markets is leading countries across the world to hedge the heightened risks of their inordinate reliance on the dollar. These risks are exacerbated by the collateral damage from US monetary policies, including interest rate changes. China sees this as an opportunity to raise the international profile and role of the RMB.
Several countries, particularly in the global South, are looking for opportunities to conduct bilateral trade with partner countries
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Apr 18 2023 | 10:43 PM IST

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