A Decade of RMB Internationalization

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Titel: A Decade of RMB Internationalization
Författare: Cheung, Yin-Wong
Institution: Bank of Finland
Avdelning / Enhet: BOFIT – Institute for Economies in Transition
Serie: BOFIT Policy Brief
Serienumber: 13/2020
Utgivningsår: 2020
Utgivningsdatum: 21.12.2020
Publicerad i: Published in Economic and Political Studies online
Sidor: 39
Subject (yso): valuutat; valuuttamarkkinat; valuuttakauppa
Nyckelord: Bofit-kokoelma; RMB; Kiina; SDR; erityisnosto-oikeudet
JEL: F02; F31; F33; G15; G18
Andra nyckelord: economic and non-economic factors; global currency status; offshore RMB market; policies promoting international uses
Abstrakt: This article recounts China’s renminbi (RMB) internationalization experiences since the 2009 RMBcross-border trade settlement initiative. In the first few years, the RMB made inroads into global financial markets and had a few remarkable accomplishments, including the Special Drawing Right currency status. Since the 2015 market turmoil, RMB internationalization has levelled off – possibly due to changes in both domestic and geopolitical conditions. The RMB is currently under-represented in the global market compared with China’s economic importance. China’s deliberate and schematic policies will elevate the RMB’s global stature in a gradual manner but there will not be a leapfrogging in the near term.
Innehållsförteckning: Contents Abstract ....... 3 1. Introduction...... 4 2. Policies to promote RMB internationalization...... 5 2.1 Local RMB clearing banks ....... 5 2.2 Bilateral local currency swap agreements...... 6 2.3 The RQFII program ...... 7 2.4 Other policy measures....... 7 2.4.1 The SDR...... 7 2.4.2 Commodity pricing ....... 8 2.4.3 International initiatives ....... 9 3. The RMB’s global status........ 9 3.1 Global FX trading ....... 9 3.2 Share of global reserves....... 10 3.3 Use in world payment transactions......... 12 3.4 The Renminbi Globalization Index......... 12 4. Offshore RMB trading ........ 13 5. RMB internationalization in retrospect...... 15 5.1 A decade of ups and downs........ 15 5.2 Multipronged strategy: positive and negative factors........ 16 6. Final thoughts....... 18 References........ 19 Appendix........ 24
Licens: https://helda.helsinki.fi/bof/copyright


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