Renminbi-IMF influence goes both ways

Significance

The deeper question is whether China's accelerating integration with the global financial system will catalyse transformative change in China's state-market relationship or whether global market actors will adapt to accommodate a resilient Chinese mode of financial governance.

Impacts

• The renminbi's use as a reserve currency will remain limited due to scepticism about further steps on the reform path.
• China's foreign exchange reserves will be swollen by increased appetite for outbound trade settlement in renminbi.
• The China Development Bank will lead China's policy banks in assuming an even greater role in the renminbi's outward push.
• The IMF will have less leverage to impose structural adjustments on the capital accounts of debtor countries.