China's exchange rate reforms boost renminbi's global influence, stabilizing financial relations.
China has been changing its exchange rate system to help its economy grow and compete globally. They are trying to balance supporting exports and making their currency, the renminbi, more widely used. By making the renminbi more flexible, China has reduced the undervaluation of its currency. While the renminbi is not yet as popular as the US dollar, its use is increasing, which is good for global financial stability.