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Renminbi from Marketization to Internationalization Author : Zhongxia Jin, Yue Zhao, Haobin Wang Publisher : Taylor & Francis Date : 13 May 2022
About the author Jin Zhongxia currently is the Executive Director for China at the International Monetary Fund. Prior to joining the Fund, he held various positions in the People’s Bank of China, including as Director-General of the Research Institute. His major research included interest rate liberalization and monetary policy transmission, internationalization of the RMB, and dynamic BOP management and its implications for China. As Deputy Director-General of the Monetary Policy Department, he was responsible for open market operations, and as Deputy Director-General of the International Department, he was responsible for G20 matters, IMF affairs, and regional monetary cooperation. He participated in the negotiations for establishing the 10+3 foreign exchange reserve pooling system and for the currency swap arrangement between China and other countries after the financial crises. Mr. Jin holds a PhD in International Finance from the University of Hawaii; and an MA in Macroeconomic Management and BA in International Economics from Peking University.


This study looks into the significance of a floating exchange rate regime, further development of the foreign exchange derivatives market, and concurrent internationalization of the Renminbi (RMB) for a resilient, open, and growing Chinese economy.

The first chapter analyzes the macroeconomic impact of foreign exchange intervention based on empirical studies on 26 economies, explaining why most countries favor a floating exchange rate regime under the existing international monetary system. The second chapter discusses the macroeconomic and microeconomic conditions that would facilitate a successful transition to a floating exchange rate. The final two chapters discuss the importance of further developing the foreign exchange derivatives market in China and explores paths toward further opening-up of the capital market and internationalization of the RMB under a floating exchange rate. Based on the authors’ decades of reflections and systematic analysis on real cases both in China and abroad, the title sheds lights on China’s exchange rate issues and research on exchange rate policy.

This book will be an essential reference for scholars, students, professionals, and policymakers interested in exchange rate, currency internationalization, the financial market, especially the derivatives market, and the Chinese economy.



Chapter 1

The Macroeconomic Impact of Foreign Exchange Intervention

Cross-Country Empirical Studies

Chapter 2

Laying a Solid Foundation and Moving toward a Free-Floating Exchange Rate Regime

A Successful Floating Exchange Rate Regime Requires Good Monetary and Fiscal Discipline

Chapter 3

Further Developing the FX Derivatives Market and Allowing for a More Market-Based Regulatory Approach in China

Chapter 4

Floating Exchange Rate and the Internationalization of the RMB