China’s efforts to expand the international use of the renminbi

In a new report, Eswar Prasad concludes that China’s renminbi (RMB) has made progress as an international currency and even as a global reserve currency, but it is unlikely to become a safe haven currency. Prasad explains that recent turmoil in China’s currency and equity markets may slow the RMB’s progress but won’t derail it so long as China’s government restarts financial market and broader economic reforms.