![]() Through an examination of the monetary and financial issues associated with the currency’s internationalization, the book emphasizes the many reasons the international community should welcome the emergence of the People’s Republic of China (PRC) as a source of global liquidity. “ Renminbi Internationalization,” a new book published jointly by Brookings Institution Press and the Asian Development Bank examines the issues in-depth. These developments have led to intense speculation that the renminbi will soon become one of the major international currencies. If the PRC continues on its present growth track, it may soon takeover from the United States as the world’s largest economy. It has already become the world’s second-largest economy and is now one of the largest contributors to global growth. In terms of size and dynamism, the economy of the People’s Republic of China (PRC) stands out among the emerging markets. This is similar to the pound sterling, which is the name of the British currency, while the price of a pint of beer in a London pub would be stated just in pounds. Thus, a person might pay for a meal using a 20 yuan banknote, and get some yuan and jiao (a tenth of a yuan) in change (the jiao is further divided into 10 fen). The yuan is the name of the unit in which renminbi transactions are denominated, but also refers to the currency generally. The renminbi is the official currency of the People’s Republic of China, and translates to “people’s money.” Its international symbol is CNY (or CNH in Hong Kong but abbreviated RMB, with the symbol ¥). When reading news and analysis of this event, you might see both terms-“renminbi” and “yuan”-used interchangeably. It is the largest devaluation in China’s system in over 20 years. China’s central bank devalued its currency last week, sending major stock markets in Asia and Europe down, and sparking fears of additional exchange rate devaluations in other countries.
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