By Alain Naef, Eric Monnet, Camille Macaire, Arnaud Mehl, Barry Eichengreen
The share of China’s renminbi in global reserve portfolios is around 3%, compared to 60% for the US dollar. This column argues that the renminbi can play a more important role in the future, even in the absence of full financial liberalisation. This process would involve trade invoicing and settlements, central bank swap lines, and offshore renminbi markets. This would not lead to the renminbi overtaking the dollar, but rather to a multipolar world of key currencies, including the dollar, euro, and renminbi.