In this regard, the RMB is clearly expected to play a greater role in international economic and financial activities. Since 2009, the Government of the People’s Republic of China and its central bank have been progressively deregulating and internationalising the country’s currency.
It is only the few savers we still have in the country, and the old-aged people who live off their interest income, who may benefit from these high interest rates. On the other hand, the high interest rates will most probably reduce consumption financed with borrowed funds, and also investment in fixed capital, equipment and inventories.