In this episode of The Sound of Economics, Yuyun Zhan invites Alessia Amighini and Alicia García-Herrero to discuss China’s latest push to internationalise its currency, the Renminbi. They talk about China’s previous two attempts, its approach to internationalise the RMB this time around and the wider implications of a strengthened RMB. This might prompt other countries to try and strengthen their own currencies, which could lead to a more fragmented financial system. Our experts discuss how the euro, compared to the dollar, might be more affected by this.

Relevant publications:

•  Amighini, A. and A. García-Herrero (2023) ‘Third time lucky? China’s push to internationalise the renminbi’, Policy Brief 20/2023, Bruegel
• China’s second attempt to internationalise the RMB by launching its own digital currency, ZhōngHuá Mundus newsletter, April 2021

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox!