A Decade of RMB Internationalization

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dc.contributor Bank of Finland
dc.contributor.author Cheung, Yin-Wong
dc.date.accessioned 2020-12-22T11:24:42Z
dc.date.available 2020-12-22T11:24:42Z
dc.date.issued 2020
dc.identifier.issn 2342-205X
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/17805
dc.description.abstract 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.
dc.description.tableofcontents 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
dc.format.extent 39
dc.language.iso ENG
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject Bofit-kokoelma
dc.subject RMB
dc.subject Kiina
dc.subject SDR
dc.subject erityisnosto-oikeudet
dc.subject.other economic and non-economic factors
dc.subject.other global currency status
dc.subject.other offshore RMB market
dc.subject.other policies promoting international uses
dc.title A Decade of RMB Internationalization
dc.type Paper
dc.identifier.urn URN:NBN:fi:bof-202012222596
dc.subject.jel F02
dc.subject.jel F31
dc.subject.jel F33
dc.subject.jel G15
dc.subject.jel G18
dc.series.name BOFIT Policy Brief
dc.series.year 2020
dc.series.number 13/2020
dc.series.sortingnumber 0013
dc.series.sortingnumber 13/2020
dc.series.sortingnumber 0013
dc.date.publication 21.12.2020
dc.subject.yso valuutat
dc.subject.yso valuuttamarkkinat
dc.subject.yso valuuttakauppa
dc.identifier.doi 10.1080/20954816.2021.1996938
dc.contributor.orgunit BOFIT – Institute for Economies in Transition
dc.description.publication Published in Economic and Political Studies online
bof-internal.includedInCRIS 1
dc.type.okm D4

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