ABSTRACT
A major market-oriented reform of interest rates, exchange rates, and capital account liberalization of the market and other changes in financial area in the system have been pushed into fast development, which is bound to add positive energy to renminbi internationalization. In the cross-border RMB settlement structure, the ratio of goods trade settlement is larger than that of service trade settlement. With the changes in domestic and international economic and financial situation, in June 2010, the People's Bank of China decided to further promote the reform of the RMB exchange rate formation mechanism to enhance the RMB exchange rate flexibility, achieve the normalization of exchange rate fluctuations, and put the periodic dollar peg policy to an end. In the "Annual Report on Exchange Arrangements and Exchange Restrictions" issued by the IMF, capital account transactions are divided into seven categories, further subdivided into eleven items, and then again into forty sub-items when assessing the capital controls status of its member states.
