Global role for renminbi

China must gradually hike the yuan's share in international trade settlements and develop it into a key reserve currency

Saturday's decision by the People's Bank of China to reform the renminbi exchange rate formation mechanism has underscored the monetary authority's sense of urgency regarding exchange rate flexibility as well as its determination to adjust the nation's long-held passive position on the matter.

China's rapid economic development and its deepened integration with the global economy over the past three decades have greatly elevated its influence on the world stage.