IEF Yeochang Yoon
Professor Kent Matthews from Cardiff University gave a general talk on November 30, “Internationalisation of the RMB: Should China beware what she wishes for?”. Professor Matthews has dedicated to do research about monetary and credit influences on the economy, and banking deregulation. The talk was about conditions for the internationalization of the currency and the historical experience of sterling and the dollar. An international currency means that it is held and used beyond the borders of the issuing country, not only for transactions with that country’s residents but also for transactions between non-residents. From the experience of sterling and the dollar, the attributes of liquidity and the characteristics of global money made them as international currencies. This experience and theory of monetary system give lessons for the Chinese government on the benefits and costs of internationalizing the RMB.