The fallacy of RMB internationalization in the context of Belt and Road
I wanted to re-post a fascinating conversation that I had with Chris Balding back in August at the View from the Peak Expert Series. Chris is an associate professor of business and economics at the HSBC Business School of Peking University Graduate School in Shenzhen. With the 19th Chinese Communist Party Congress commencing on October 18th, it is time to reflect on potential big picture policy shifts in the second five year term of President Xi Jinping. One debate that rages is the idea of the internationalization of the RMB. Chris and I discuss this at length and his insights only reinforced my thinking that Beijing has very little interest in internationalizing the currency and relinquishing control of the capital account. The misconceptions surrounding the Belt and Road initiatives drive home this point. Please enjoy this report or listen to our conversation.