The journey to RMB internationalisation continues. China's policymakers are supporting the process, but as part of a broad framework that is trying to balance financial reform and macroeconomic objectives. Meanwhile, the global infrastructure to support the RMB in the form of clearing banks in offshore centres has made a huge leap over the past year. On top of this, the RMB is now more widely accepted by private parties. It is even the case that various RMB markets have been expanding after the FX band widened and expectations of a stronger currency weakened. This is an indication of a firmer acceptance of the currency. However, there is room for improvement. the market structure is insufficiently diversified and is largely dependent on the opening of the capital account. China's authorities, however, have no interest in taking giant steps. So the process of RMB internationalisation will continue to be gradual.
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