Offshore and Onshore Strategies of RMB Internationalization (Plus a Note on Russia)
Let’s make a few things clear right out of the gate. China has no plans to make the renminbi the global reserve currency. The renminbi will never replace the dollar as the global reserve currency. China doesn’t want the renminbi to replace the dollar as the global reserve currency. America doesn’t want the dollar to stay as the dominant reserve currency. America wants to rebalance its global responsibilities with other nations and currencies. Both China and America have a lot to lose if some sort of understanding and agreement on the monetary policies and alignments which will lead to a rebalancing aren’t established. But America still has the greatest influence on how this can all play out.
These are facts which are often conveniently ignored by those selling a script based on a falsification of data, outright incompetence, and a complete lack of the fundamental knowledge required to accurately interpret, analyze, and repackage the information for everyday comprehension.
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