SOURCE: Six Capital
RMB: A Historic Moment for the Global Financial System
With the IMF expected to give final approval to bestow reserve-currency status to the RMB on 30th November, Patrick Teng, CEO and Founder of Six Capital and Thomas Trikasih Lembong, Minister of Trade Economy Affairs, discuss the potential ramifications.
A historic financial event, not seen since the launch of the Euro in 1999, it raises some key questions: What if Indonesia chooses to align itself more closely with the RMB over the dollar? Will the internationalisation of the RMB enable China to become a provider of liquidity to the market? As Mr Teng comments, one thing that the Chinese authorities should take into account "with great power comes a tremendous amount of responsibility."