among the flexible and internationally used investment currency elite. one example of such necessary reforms would be to eliminate obstacles hindering access to the capital market, such as the quota model for investment in the bond market. the final step towards becoming a globally recognised key currency is for a currency to be used as an international reserve currency. the renminbi's inclusion in the imf's special drawing rights basket has provided the framework for this. it is now expected that a wider range of market participants will invest capital in renminbi - denominated securities. these participants will likely be joined by an increasing number of central banks that will, in the future, invest parts of their reserve assets in corresponding securities, mostly government bonds. 3. what is the role of the frankfurt financial centre in the internationalisation of the renminbi? the renminbi's internationalisation strategy does not culminate with the currency's inclusion in the imf's basket of currencies, however. on the contrary, the chinese government is currently focusing on a whole raft of measures. one of these is the cross - border interbank payment system ( cips ). it was launched in october 2015 and is the sole provider of settlement services for offshore renminbi payments. the people's bank of china designed cips to provide an infrastructural buffer for the expected growth in renminbi transactions and to stem the disadvantages with regard to settlement efficiency vis - a - vis other currencies ( particularly the us dollar ). other measures include bilateral cooperation agreements that aim to further promote use of the renminbi as a trading and investment currency. the potential for efficient renminbi clearing is significant to enterprises that operate internationally. as china's largest european trading partner, germany is of crucial importance in this context. it was not for nothing that the first renminbi clearing hub located outside asia was established in frankfurt. since 2014, it has been possible to settle renminbi - denominated payments via the frankfurt branch of the people's bank of china. this service provides attractive opportunities for small and medium - sized enterprises, for instance, to establish and expand business 2 / 3 bis central bankers'speeches relationships with chinese enterprises while at the same time settling payments with china within their own local time zone and jurisdiction. the china europe international exchange, or ceinex, is another collaborative initiative. this joint venture of the deutsche borse group, the shanghai

it really is an illusion to separate liability and control without undermining the stability of monetary union. and there is no getting around the fact : a combination of national sovereignty and common solidarity can pose a risk to the stability of our monetary union. a large measure of solidarity certainly helps a country in crisis to cope in the short run. but, allowing a national fiscal burden to be shifted onto the community of all member states will weaken incentives for sound fiscal policy in the long run. the underlying economic problem here is known as the “ tragedy of the commons ”. this is a situation in which every individual tries to reap the greatest benefit from a given resource. let ’ s bis central bankers ’ speeches take the example of overfishing : just as fishing by the crew of one fishing boat reduces the number of fish available for others and threatens the entire fish population in the long run, excessive public debt harms the euro area as a whole. rising debt in one member state drives up longer - term interest rates for all euro - area countries. and if the excessive debt of one country poses a threat to the financial stability of the entire euro area, the viability of the whole project might be called into question. the point of the tragedy of the commons is that it is, from a certain narrow point of view, entirely rational for a single fishing vessel to catch as many fish as it can, thus destroying the basis of such economic activity for others and for future generations. so, what we have here is a classic coordination failure. 2. emu ’ s architecture ladies and gentlemen, in their report on completing emu, the five european presidents compare the monetary union with “ a house that was built over decades but only partially finished. when the storm hit, its walls and roof had to be stabilised quickly ”. however, after all those quick fixes in recent years, it needs to be decided how the house should look in the future, and if i may quote the five presidents again : “ it is now high time to reinforce its foundations ”. the latter is certainly true, but you can come to very different conclusions about how to construct those foundations. to find out how the euro area could develop, we first need to take a closer look at the special terrain occupied by europe ’ s monetary union. what sets our monetary union apart from other currency areas? i think the difference can be summed up in a single word : asymmetry. emu unified monetary policy. but