Tao Liu, Central University of Finance and Economics: This paper provides a detailed and systematic analysis on polices trying to promote local currency usage. This topic attracted wide attention in the wake of the 2008–09 global financial crisis. The safety and sustainability of the international monetary system's currency centering around the U.S. dollar has been severely questioned. Many countries therefore seek to promote internationalization of their domestic currency. One example is the Chinese Renminbi, which officially joined the Special Drawing Right currency basket in 2016.
Following this trend of currency internationalization, the author discusses (1) policies on the currency exchange market; (2) China's policy to promote RMB internationalization; (3) the Local Currency Settlement Framework (LCSF); and (4) the Asian Bond Market Initiative (ABMI) and Asian Bond Fund (ABF).
The author's rich experience and expertise in this field make his arguments convincing and insightful. Here I provide some complementary thinking and...