Ladies and Gentlemen, Let me conclude with a few broader strokes on the future for renminbi internationalization. A more prominent international role for the currency would require a more flexible foreign exchange regime, as well as lifting up the remaining capital control measures. Greater transparency is also needed – for instance, by increasing access of international credit agencies to the onshore renminbi market.
However, capital account liberalisation requires a sound domestic financial system, as well as adequate institutional capacities, including firm supervision and macroprudential regulation. Otherwise, a push towards more openness could cause volatile capital flows and financial instability. Therefore, increasing the international role of renminbi will likely be a gradual process.