From the Federal Reserve’s perspective, effective risk management at financial institutions plays a critical role in helping to achieve our central bank responsibilities of: 1. promoting an efficient and effective financial system that adequately finances economic growth, and 2. ensuring that financial institutions do not become a source of systemic risk, or pose a threat to the payment system or burden taxpayers with losses arising from the federal safety net.
Looking forward, the RMB clearly has the potential to become a major international currency and to be included, when the International Monetary Fund will deem it appropriate, in the basket of currencies that determines the value of the Special Drawing Rights (SDRs).