Further to this, the issuer country’s economic size and centrality in regional or global production and trade networks is an important driver of demand for its currency at the international level, while capital account openness and the consequent currency’s convertibility, as well as the depth of domestic financial markets, provide further assurance to global investors.
Considerable progress has been made in several relevant fronts towards the internationalization of China’s renminbi over the last years. Its growing use as a medium of exchange and unit of account is evident.