The ‘Belt and Road’ Initiative
and the London Market –
the Next Steps in Renminbi
Internationalization | Part 3: Framework for Policy Discussion

Introduction

Over the past 18 months, the internationalization of the renminbi, China’s currency, has entered a new phase. Lower interest rates in the onshore renminbi market, combined with slower economic growth in mainland China and expectations of currency depreciation in the medium term, have caused the expansion of the offshore renminbi bond market to slow dramatically (in some quarterly periods, bond issuance has even contracted). This is despite the progressively greater opening of the Chinese capital account, increased interconnectedness between the onshore and offshore markets, and the addition of the renminbi to the IMF’s Special Drawing Right (SDR) basket.
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Policy Recommendations
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About the Authors
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Acknowledgments
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