Gradual internationalization of renminbi will benefit world's financial markets, but lessons of others should be heeded

G20 seminar on reshaping the global monetary system is being held today in the eastern Chinese city of Nanjing. Given growing foreign pressure to appreciate the renminbi, China's forex policy and the renminbi's role in a multi-currency global system are likely be discussed at the meeting.

One week before the meeting, the USD/CNY fixed rate hit its highest point since 2005. Earlier on Jan 4, the World Bank issued its first renminbi-denominated bond. It will raise 500 million ($76 million) from the two-year bond issue with the nominal interest rate of 0.95 percent.