Tuesday, June 30, 2015

Not Everyone is Buying the Renminbi Hype.

Earlier this month, the People's Bank of China released The Renminbi Internationalization Report 2015.  The Economic Observer ran a discussion piece (in Chinese) on this issue.  Not everyone is buying the hype.
“但如果问人民币国际化处于哪个阶段?央行报告中并未明示。不过,也许可参考2014年7月中国人民大学国际货币研究所发布的《人民币国际化报告》,文中提及2013年的RII(人民币国际化指数)为1.69。这是什么概念?尽管2013年RII的全年涨幅84%,但1.69距美元国际化指数52.96相差31倍,分别与欧元、日元、英磅的国际化指数相差18倍、2.52倍、2.54倍。答案不言而喻:人民币国际化还有很长的路要走。”
[Translation:  "At what stage are we at in the process of renminbi internationalization? The People's Bank of China's report does not elaborate. However, we can reference the Renminbi Internationalization Report issued by the International Currency Institute of Renmin University in July 2014. According to that report, the Renminbi Internationalization Index (RII) in 2013 was 1.69. What does that mean? Even though the RII increased 84% in 2013, the U.S. Dollar International Index at 52.96 was 31 times higher than the RII. The similar rating for the euro, Japanese yen, and British pound were 18, 2.52, and 2.54 times higher than the RII. The answer is self-evident: Renminbi internationalization has a very long road ahead."]
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