It would be implausible to assume that renminbi “internationalization” will be further developed without significant capital-flow deregulation. In fact, the current strict regulations on capital inflows to the mainland have gradually become an obstacle to the further development of offshore renminbi markets themselves. The need for issuance of renminbidenominated bonds, so-called dim-sum bonds, is after all limited.
With its study of LTCM behind it, the President’s Working Group released a long-awaited report that evaluates the regulatory framework for over-the-counter derivatives.