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CUEB School of Economics Holds 3rd ECO International Symposium

Author:Translated by Hua Zexun, proofread by Liang Jue Editor:Liang Jue Publish:2017-04-06 Size:TTT
On March 15th, CUEB School of Economics held the 3rd ECO International Symposium­-Understanding the World, themed as “How China Is Building a Global Currency”. The symposium was chaired by Prof. Paola Subacchi, director of international economics research at Chatham House.
 

Prof. Lang Lihua, dean of School of Economics, extended warm welcome to Dr. Paola Subacchi and introduced her major research fields and work experience. Dr. Paola then shared with the teachers and students present the context in which her new book The People’s Money was penned and valuable ideas on the internationalization of RMB. 

Dr. Paola Subacchi spoke highly of the achievements made in economy, society, infrastructure and other fields by China over the past 40 years, who leaped from a less developed country to the second largest economy in the world. Generally speaking, there is no powerful nation with weak currency. Yet there is a chasm between the international influence of RMB and China’s improving economic strength as US dollar is still dominating the international monetary system. After the outburst of 2008 financial crisis, which severely damaged the international trade system, people came to realize loopholes of the current monetary system. Huge progress has been made in RMB globalization by adopting RMB cross-boarder trade settlement and developing offshore markets since 2009. RMB’s classification as SDR currency in 2016 symbolized the currency’s rising international standing. Hong Kong, Singapore, Taipei, Tokyo, London, Frankfurt and many other regions are introducing RMB offshore trade services, increasing the proportion of RMB in international payment. However, the limitation on opening capital account and the current RMB depreciation have both held RMB back in internationalization. RMB still has a long way to go in the future. 

Dr. Paola Subacchi had fully communication with faculty members and students after her speech. Opinions and views were exchanged on multiple issues, including the influence of FRB interest rate hikes on RMB internationalization, reasons why western developed countries are reluctant to recognize China’s market economy, striking a balance between opening capital account and currency internationalization, relationship between the choice of exchange rate regime and RMB internationalization, competition between RMB and other currencies in internationalizing process, etc.

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