Editing Renminbi (section)

===Convertibility===
During the era of the [[command economy]], the value of the renminbi was set to unrealistic values in exchange with Western currency and severe currency exchange rules were put in place, hence the dual-track currency system from 1980 to 1994 with the renminbi usable only domestically, and with [[Foreign Exchange Certificate]]s (FECs) used by foreign visitors.{{cn|date=November 2024}}

In the late 1980s and early 1990s, China worked to make the renminbi more convertible. Through the use of swap centres, the exchange rate was eventually brought to more realistic levels of above ¥8/US$1 in 1994 and the FEC was discontinued. It stayed above ¥8/$1 until 2005 when the renminbi's peg to the dollar was loosened and it was allowed to appreciate.{{cn|date=November 2024}}

As of 2013, the renminbi is convertible on [[Current account (balance of payments)|current account]]s but not [[capital account]]s. The ultimate goal has been to make the renminbi fully convertible. However, partly in response to the [[Asian financial crisis]] in 1998, China has been concerned that the Chinese financial system would not be able to handle the potential rapid cross-border movements of [[hot money]], and as a result, as of 2012, the currency trades within a narrow band specified by the Chinese central government.{{cn|date=November 2024}}

Following the [[internationalization of the renminbi]], on 30 November 2015, the [[International Monetary Fund|IMF]] voted to designate the renminbi as one of several main world currencies, thus including it in the basket of [[special drawing rights]]. The renminbi became the first emerging market currency to be included in the IMF's SDR basket on 1 October 2016.<ref name="Solomon Teague"/> The other main world currencies are the [[United States dollar|dollar]], the [[euro]], [[Pound sterling|sterling]], and the [[Japanese yen|yen]].<ref>{{cite news | first=Keith | last=Bradsher | title=China's Renminbi Is Approved by I.M.F. as a Main World Currency | url=https://www.nytimes.com/2015/12/01/business/international/china-renminbi-reserve-currency.html?emc=dlbkpm&emc=edit_dlbkpm_20151130&nl=%3Fnl%3Ddlbk&nlid=64450146&_r=0 | newspaper=NY Times | date=30 November 2015 | access-date=30 November 2015 | archive-date=23 April 2021 | archive-url=https://web.archive.org/web/20210423003710/https://www.nytimes.com/2015/12/01/business/international/china-renminbi-reserve-currency.html?emc=dlbkpm&emc=edit_dlbkpm_20151130&nl=%3Fnl%3Ddlbk&nlid=64450146&_r=0 | url-status=live }}</ref>