Summary of the General Discussion on “RMBI or RMBR? Is the Renminbi Destined to Become a Global or Regional Currency?”

Anwar Nasution emphasized that the approach to the question of the RMB's internationalization should be based on the role of money (i.e., as a medium of exchange, store of value, unit of account). From this perspective, he feels that the basic role of the RMB as money is difficult to fulfill. China has limited technology. He cited examples such as an iPad's parts being made elsewhere and simply assembled in China, as well as the fact that one cannot simply buy high-technology items such as a Boeing 747 from China owing to limited technology in China. The medium of exchange function will therefore have difficulty being met by the RMB as there is not much of value that can be bought in China. Tight capital controls in China also mean that there is no wide international trading of the RMB. The legal system necessary is also absent; there are high...