A few comments about Renminbi’s ability to become an international currency

Abstract

The article focuses on analyzing the criteria for a currency to become an international currency, specifically applied to the renminbi from 2000 up to now, especially after the 2008-2009 financial crisis. Using a set of criteria on the three functions of money (unit of value, medium of exchange, store of value) for both the private and official sectors, the author presents evidences of the implementation perform these functions of the renminbi. In many indices, the renminbi saw significant changes in both the private and official sectors. As the medium of exchange, the renminbi ranks 6th on the SWIFT system and 8th on the BIS survey. The renminbi's inclusion in the SDR basket in 2016 assesses the renminbi's turning point on the way to becoming an international currency.