China’s State Council or Cabinet’s decision to permit the use of Ren-Min-Bi (RMB) , in cross-border trade settlement, as part of its long-term plan to globalize its currency and reduce the domination of the US dollar, will eventually reshape forces at play in international foreign exchange (forex) markets.

Presently, the currency of China — the world’s third largest economy and trading nation — is not exerting befitting influence in the forex markets due mainly to limited use of the Yuan in international trade and investments, as well as restrictions placed on its supply and convertibility.

However, the window to Yuan’s liberation was opened wider when Beijing launched the pilot scheme on RMB cross border trade settlement on July 6.

In 2009 NOBEL Prize Economics went to two Americans who distinguished themselves by thinking outside the box and articulating their work through a qualitative methodology.

The economics profession did not expect the prizes to go to individuals who were not rigorous in a mathematical sense, as economics schools have been captured for a very long time by individuals who are obsessed in presenting economics ideas, thoughts and theories in elegant mathematical terms.

One of the prize winners is not even a practicing economist. Elinor Ostrom is a political scientist by training and as she is from Indiana University, is not of Ivy League pedigree. The other co-winner is Oliver Williamson from the University of California, Berkeley.

Well-known blogger and Harvard University professor Gregory Mankiw gave Williamson a one-in-50 chance of winning the prize. Mankiw’s favorite was Eugene Fama, who developed the efficient-market hypothesis (EMH) which, according to Lawrence