Internationalisation of Chinese currency

China, a large importer of Iranian oil, is likely to use its petro-yuan to bypass payment in dollars. This may offer India a possible solution

The internationalisation of the Chinese currency, the renminbi (RMB), has been one of the key objectives of Chinese economic reform. Progress was steady up until August 2015 when a cumulative 3 per cent devaluation, as part of exchange rate reform, roiled the financial and the stock markets and triggered capital flight. This led to a reversal, at least temporarily, of current account convertibility, re-imposition of some controls on capital flows, including repatriation of profits and restricting overseas direct investment (ODI) by Chinese conglomerates. These measures also had a dampening impact on the offshore RMB market, both in RMB-denominated bank deposits