Bringing down the Great Wall? Global implications of capital account liberalisation in China

Quarterly Bulletin 2013 Q4
Published on 20 December 2013

By John Hooley of the Bank’s International Finance Division.

Capital account liberalisation in China and internationalisation of the renminbi would have a large impact on the global financial system. An illustrative thought experiment suggests China’s gross international investment position could increase from around 5% to 30% of world GDP by 2025. The UK financial system is likely to be particularly affected. The Bank is working with the People’s Bank of China to ensure a successful and stable development of renminbi activity in London.

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