Esteemed banker Prof Liu Mingkang was invited to give a lecture entitled “Some thoughts about the construction of RMB internationalisation” at Lingnan University on 22 November.
At the Distinguished Lecture jointly organised by the Department of Economics and Master of Science in International Banking and Finance Programme, Prof Liu talked about the increasing use of RMB and three phases of its internationalisation. He also explained the benefits of RMB internationalisation and identified five issues about RMB internationalisation for discussion.
According to Prof Liu, the recent decline in Hong Kong dollar deposits shows that the use of RMB is no longer confined to trade settlement. Its use as a payment currency has moved from the world’s 20th in January 2012 to 12th in September 2013. The RMB has increasingly been viewed as a preferred currency for investment but it may take some time for it to become a reserved currency.
Prof Liu called for a strategic plan to promote China’s reform and opening, the liberalisation of the interest rate and exchange rate scheme, the enhancement of market regulation, increased transparency for liquidity management and a better legal framework for bankruptcy and the deposit insurance scheme.
Prof Liu received an honorary doctorate in social sciences from Lingnan University in 2012. As the first Chairman of the China Banking Regulatory Commission (CBRC), he has made remarkable contributions to the development of the Chinese banking sector and is regarded as a problem-solving expert who has been repeatedly entrusted with tackling major crises. The Global Association of Risk Professionals named Prof Liu and the CBRC its 2009 Risk Manager of the Year. He was honoured with the Lifetime Achievement Award by The Asian Banker magazine in 2012.