With the RMB globalization proceeding, overseas economic entities hold more and more RMB positions and RMB exchange rate becomes increasingly market-oriented. As a result, the overseas entities will face market, liquidity and other risks in asset allocation and fund management, which produces the demand for risk management. Pricing and hedging are two major aspects of risk management.
Redefining the mandate of central banks The crisis has triggered vigorous and wide-ranging debate on the role and responsibilities of central banks and raises three big questions:  BIS Review 92/2010  1  Should central banks persist with inflation targeting?