Twenty years ago MNCs were trying to figure out how to manage cash in China. Back then Chinese authorities had a tight grip on the renminbi as it tried to keep a lid on RMB speculation. The government required foreign MNCs to maintain local account in non-RMB currency which was to be debited or credited for local transactions. Today it’s a different story as Chinese regulators have sent the RMB abroad to seek its fortune. Today a number of financial reforms are rapidly liberalizing the country’s capital account and allowing market forces to play a bigger role in China’s financial system.
Twenty years ago MNCs were trying to figure out how to manage cash in China. Back then Chinese authorities had a tight grip on the renminbi as it tried to keep a lid on RMB speculation. The government required foreign MNCs to maintain local account in non-RMB currency which was to be debited or credited for local transactions. Today it’s a different story as Chinese regulators have sent the RMB abroad to seek its fortune. Today a number of financial reforms are rapidly liberalizing the country’s capital account and allowing market forces to play a bigger role in China’s financial system.
Twenty years ago MNCs were trying to figure out how to manage cash in China. Back then Chinese authorities had a tight grip on the renminbi as it tried to keep a lid on RMB speculation. The government required foreign MNCs to maintain local account in non-RMB currency which was to be debited or credited for local transactions. Today it’s a different story as Chinese regulators have sent the RMB abroad to seek its fortune. Today a number of financial reforms are rapidly liberalizing the country’s capital account and allowing market forces to play a bigger role in China’s financial system.