Jean-Louis Combes, Tidiane Kinda, and Patrick Plane: “Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate”, IMF Working Paper, 2011. BIS central bankers’ speeches  3    While controls to limit short-term inflows could be helpful in specific circumstances, such restrictions in force for longer-term entail costs.
Even though the US dollar is still the most widely used currency for trade with China, the use of the RMB as a currency of account has gained significant ground in the past few years. In trade finance, the Chinese currency has surpassed the euro and now occupies second place, directly after the US dollar.