Given the spillover effects in a financial market as closely integrated as that of the European Monetary Union, the risk of contagion for other euro-area member states and beyond implied a substantial risk – including for the global  2  BIS Review 151/2010  economy. Far-reaching ad hoc countermeasures had to be taken earlier this year.
The effects of this transition – involving the internationalisation of the RMB and the opening up of the capital account – could ultimately be as wideranging as were the effects of China’s ascension to the World Trade Organisation. Managed well, this transition can be a win-win for both China and the rest of the world. Thank you.