RMB's Internationalization Faces Challenges Due to China's Financial Market Limitations
The internationalization of the Chinese currency, the RMB, is facing challenges due to the limited development of China's financial market. The process started during the global financial crisis but is different from other currencies due to restrictions on interest rates, exchange rates, and capital account opening. The RMB's internationalization began with trade but cannot end there, and full convertibility is needed, which China is not ready for yet.