alt Hacker NewsDoes using the Renminbi require investing in securities?
It's a very different thing to trust that China will maintain the value of its currency, than to trust that investment in Chinese companies will remain liquid and not be arbitrarily cut to a price of zero.
I'm not saying you're wrong, but I also don't fully understand the need to have grander access to capital markets. Perhaps access to the equivalent of US Treasury auctions?
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> I'm not saying you're wrong, but I also don't fully understand the need to have grander access to capital markets.
Well if you use the renminbi or yuan as just a medium of exchange, well, why bother when you already have the dollar?
To answer your question better, what is the point of access to capital markets of a country and how does that stabilize or strengthen its currency, or make it more highly sought after?
China is notorious for not maintaining the value of it's currency though.
That's why do many Chinese people buy assets in the Anglo world; assets are much better protected here