The BRICS, Asia & International Monetary Reform – RMB Internationalization and Beyond

About the series

The disjuncture between global markets and an international monetary system based on national currencies generates instability for global trade and finance. As the BRICS (Brazil, Russia, India, China, South Africa) and Asian countries have become more integrated into the world economy, they have become increasingly aware of fundamental problems or challenges of the current International Monetary System (IMS).

This commentary series will feature innovative research findings on:

  • the range of views on the fundamental systemic problems that are pushing countries to seek international monetary reforms (that is, the “need” behind the reform);
  • views from the BRICS and Asian countries, as well as regional considerations on the adjustment measures that key countries are already taking in response to the instability in the IMS, including currency internationalization; and
  • options and preferences for orderly adjustment.

In the Series

The Singapore Exchange Limited — or SGX — announced on July 6, 2012 that it is ready to list, quote, trade, clear and settle securities denominated in Chinese renmimbi (RMB), as it aims to parlay the decision to name an RMB-clearing bank for Singapore into a game changer for offshore RMB business. SGX's addition of RMB securities trading complements the offshore RMB bonds already listed on the exchange.
The experimentation in renminbi (RMB) internationalization is about to take a new turn. On July 6, 2012, China and Singapore signed an enhanced free trade agreement (China-Singapore Free Trade Agreement) that includes a promise to designate a Chinese bank to clear RMB deals in Singapore.
Measures to support Hong Kong's future economic development, announced by China's Vice Premier Li Keqiang in August 2011, have been greeted by Chinese media and businesses as a significant step forward in promoting China’s national currency as a major international reserve currency.