RMB grows in influence

Synopsis

During the U.S. presidential debates, the Renminbi (RMB), China's currency, becomes a focal point as Mitt Romney threatens to punish Beijing for keeping it undervalued. He highlights how American companies shut down and people lose jobs because China does not adhere to the same rules. Barack Obama claims credit for pressuring Beijing to allow the RMB to rise. China aims to elevate the RMB to an international currency to gain independence from the U.S. dollar, seeking more pricing power for commodities globally. This shift would allow China to price goods in RMB rather than dollars, reducing exchange rate risks for Chinese buyers. With its significant economy, China is positioned to influence the international monetary system, pushing for the RMB's internationalization as a strategic move for both economic and political reasons.