The current international monetary system has critical defects. An effective reform of the system calls for a new international currency, for which the Renminbi may be a promising candidate. Despite the rapid growth of the Chinese economy, certain prerequisites have to be satisfied before the Renminbi can be internationalized. China needs to ensure full convertibility of the Renminbi and further develop its financial markets to facilitate the process of internationalization.
This course will discuss various aspects of the Renminbi internationalization. Specifically, innovative suggestions will be provided on topics including the reform of the international monetary system, the opportunities and challenges of the Renminbi internationalization, and the evolution of China’s monetary and exchange rate policies. Since the internationalization of Renminbi is important to the future of Hong Kong as an international financial center, the lectures will also discuss the possible implications of this process for Hong Kong.