TABLE OF CONTENTS

Foreword   1
Executive Summary  3
Key Abbreviations  4
Introduction  5
The Currency Internationalization Process—And What Makes China Different  9
The Launch of RMB Internationalization: Offshore Deposits and Trade Settlement  10Onshore Investment Channels: QFII, RQFII, and the Interbank Investment Program  12
Offshore RMB Investment via the Offshore RMB Bond Market  14
Additional (Two-Way) Investment Channels:  The Hong Kong-Shanghai Stock Connect, Cash Sweeping, and Free Trade Accounts  16
Official Support for the RMB  18
The Global Growth of RMB Financial Centers  20How RMB Bank Transactions Are Cleared and Settled  22
Central Bank Reserves  23
The Challenges Ahead  24Principles for an Effective Internationalization Process  27Conclusion  32