renminbi Jie Zhao/Getty Images

The Retreat of the Renminbi

The dramatic fall of the renminbi since 2014 reflects the slowing of China’s debt-fueled economic growth and the accumulation of default risks. Unlike just a few years ago, the world now has little, if any, reason to continue stockpiling China's currency.

NEW YORK – “The globalization of the yuan seems remorseless and unstoppable,” pronounced The Economist in April 2014. Indeed, use of the Chinese yuan, or renminbi (RMB), in global payments would double between then and August 2015, to 2.8% of the total, making China’s currency the fourth most used in the world.