Yuan: Globalization or Stability?

Wall Street Journal published an article about the approval of the first Yuan-dominated fund in Hong Kong, run by the Haitong Securities Co.

It is an interesting comment on this issue from sify finance:

Beijing wants a stable yuan and a bigger international role for the Chinese currency. It will be difficult to have both. Relaxing the use of the yuan outside China will cause more capital to flow into the country, making it harder to control the exchange rate. So far, Beijing has managed to limit the yuan’s volatility. That may not last forever.

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