Personal tools
>> Media >> Kiel Institute Focus  
Kiel Institute Focus

The Kiel Institute Focus Series presents papers on current economic policy topics. Their authors are solely responsible for their content and their views or any policy recommendations they may make do not necessarily represent the views or recommendations of the Institute.

institute_focus.jpg © Stephen Coburn -

Email Alert

To get registered to receive email alerts when new issues of the Kiel Institute Focus are published, please click here and select "Abonnieren" on the left side.

To be removed from the list,
select "Abbestellen".

You can also change language at the bottom of the left side.

Document Actions

Kiel Institute Focus

2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 20092008


No. 27    March 10, 2015
by Yuanfang Li and Wan-Hsin Liu


RMB Internationalization and the Role of Shanghai Free Trade Zone

The government of the People’s Republic of China (China, hereafter) is widely perceived to play an active role in designing and maneuvering the process of internationalization of RMB (Renminbi, Chinese currency). Initiated with a pilot program allowing RMB usage in trade settlement in 2009, it has gained increasing significance in China’s policy agenda. The goals are to facilitate China in getting out of the dollar trap, to reduce FX risks and associated costs weighing on the trade sector, and to increase its own stake and influence in the global financial system. Although the term of “RMB internationalization” has never been directly used in China’s official documents, the Chinese government has actively promoted the use of RMB step by step, first in cross-border trade, then in foreign and outward direct investment (FDI and ODI), and lastly in foreign portfolio investment and bank lending, to different extents. These policy moves have echoed the urge for currency diversification, when the deficiencies in the current international monetary system and the FX risk facing China’s foreign assets became apparent during the recent global financial crisis.


Media Hotline
Phone +49 431 8814-774
Press Contacts

Guido Warlimont
Head of Communication Centre
Phone +49 431 8814-629

  • Media enquiries Prof. Dennis J. Snower
  • Media enquiries IfW

Mathias Rauck

Phone +49 431 8814-411

  • General Media enquiries

Elisabeth Radke
Phone +49 431 8814-598

  • General Media enquiries

Dr. Claus-Friedrich Laaser
Phone +49 431 8814-463

  • General Media enquiries