China wants to have its cake and eat it when it comes to the renminbi. Beijing is loosening restrictions on the use of the currency but not so much as to make it fully convertible on its capital account.
China has been elevating the importance of its currency in the international financial system for some time – witness the swap deals it arranged with some Latin American and Asian countries last year to provide liquidity.
Over the past few months, however, the authorities have accelerated their drive to make the renminbi more global. One recent measure includes expanding...
