Research on the Capital Account Convertibility and Internationalization of the Renminbi

Author: Zhao Qingming
Publisher:
Publish Date: 2005-07-01
Features: In December 1996, the RMB achieved convertible status for current account items, and at the time, some predicted that capital account convertibility would be realized around the year 2000. However, the Asian financial crisis of 1997, coupled with the accumulation of non-performing loans in China's banking system, brought the reform of the RMB exchange rate system to a near standstill. Since late 2002, the international discourse began to spread the theory of RMB appreciation, and the issue of RMB exchange rate reform once again became a focal point in the industry. The author of this book takes the capital account convertibility of the RMB as the core and starting point. They analyze and solve the main issues of the current round of RMB exchange rate system reforms, proposing unique and insightful proposals. Focusing on the issue of RMB capital account convertibility, the book conducts a comprehensive and in-depth study of its related jurisdictional issues, the inherent necessity of capital account convertibility, the relationship between exchange rate system choices and the degree of capital account convertibility, the effectiveness of exchange rate policies, the reasonable level of the RMB exchange rate, and the internationalization of the RMB. The author breaks through previous research models on this issue, studying the capital account convertibility of the RMB from a completely new perspective and a framework that is closer to the essence of the problem. They aim to identify the main issues during the transition and propose feasible implementation plans.