Why Beijing should open its government bond market

China's renminbi isn't truly a global currency, despite the IMF's recent announcement. However, it could be were Beijing to liberalise access to its government bond market.

The International Monetary Fund’s decision to include the Chinese renminbi as a reserve currency marked a political triumph for Beijing. It gives the currency the same gravitas as the US dollar, yen, euro, and British pound.

Was it truly deserved Not so much.

The IMF trumpeted that the renminbi is freely usable, meaning that it is widely used both for foreign exchange trading and global trade payments. Yet while Swift, the company that monitors international bank payments, reports that the renminbi is the world's fifth-most used currency, the fact of the matter is that non-Chinese usage of the renminbi is heavily predicated upon Hong Kong...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222