Analysis of Current Development of Offshore RMB Market and Its Risk Regulations

作者:Yang Jie*
来源:Joint Conference of International Conference on Social Science and Contemporary Humanity Development (SSCHD) / International Conference on Management, Economics and Social Development (ICMESD), 2015-02-06 to 2015-02-08.

摘要

The rapid growth of China's economy and fast expansion of foreign trades have greatly increased the demand for RMB. As a result, the internationalization of RMB has become an inevitable trend. Historical experiences suggest that a well-organized offshore market is essential in promoting the internationalization of a currency. We have noticed that the Chinese government has launched a number of initiatives in establishing active offshore markets. In fact, the offshore Chinese Renminbi market (CNH) has become one of the most important foreign economic activities in China since 2008. This article has analyzed the current developments of RMB offshore market as well as the challenges it is facing. Also, we discuss some possible offshore market supervisions/regulations in the last part of the article.