Will the Renminbi become an international currency? Policy issues for the European Union

Since 2010, China has been trying to promote the use of the Renminbi (RMB) as international currency. Strategies have changed over time. From one based on off-shore centres, mainly Hong Kong, the current push is centred on shifting trade settlements into RMB, especially those for major commodities, including oil. China’s increasingly large economic size and trade war clearly helps as well as China’s leadership in the Global South. In this closed-door round table, we aim at discussing the extent to which the RMB is advancing as an international currency, the main drivers of such advance and what to expect going forward. Finally, we will be also look into the implications for the euro and the European Union in general.

This is an output of China Horizons, Bruegel's contribution in the project Dealing with a resurgent China (DWARC). This project has received funding from the European Union’s HORIZON Research and Innovation Actions under grant agreement No. 101061700.