The Potential of the Renminbi as An international Currency

The US-originated global financial crisis and the following eurozone sovereign debt crisis have raised questions over the current international monetary system which is built around the US dollar as a global reference currency and the euro as a regional currency. It is increasingly suggested that th...

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Main Author: MO, YIN
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2012
Online Access:https://eprints.nottingham.ac.uk/26146/
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author MO, YIN
author_facet MO, YIN
author_sort MO, YIN
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description The US-originated global financial crisis and the following eurozone sovereign debt crisis have raised questions over the current international monetary system which is built around the US dollar as a global reference currency and the euro as a regional currency. It is increasingly suggested that the global reserve system should better reflect the increased weight of emerging market economies, particularly China, as a natural consequence of its appearance as the world’s new economic powerhouse recently. This paper investigated the potential role of China’s currency, the renminbi, as an international currency. To achieve this goal, an empirical estimation on the determinants of the shares of major reserve currencies held by the world’s central banks was conducted. In addition, the process and achievement of RMB internationalization is assessed to provide relatively clear guidance. The underdevelopment of China’s financial system and persistent constrains on the capital account is thought to be the largest impedence for the renminbi to gain an international role. It is conceivable that China will adopt a gradual and steady path to promote and enhance the RMB’s acceptance overseas without disrupting its own economic development under the consideration of the associated benefits and costs.
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spelling nottingham-261462017-10-19T13:17:56Z https://eprints.nottingham.ac.uk/26146/ The Potential of the Renminbi as An international Currency MO, YIN The US-originated global financial crisis and the following eurozone sovereign debt crisis have raised questions over the current international monetary system which is built around the US dollar as a global reference currency and the euro as a regional currency. It is increasingly suggested that the global reserve system should better reflect the increased weight of emerging market economies, particularly China, as a natural consequence of its appearance as the world’s new economic powerhouse recently. This paper investigated the potential role of China’s currency, the renminbi, as an international currency. To achieve this goal, an empirical estimation on the determinants of the shares of major reserve currencies held by the world’s central banks was conducted. In addition, the process and achievement of RMB internationalization is assessed to provide relatively clear guidance. The underdevelopment of China’s financial system and persistent constrains on the capital account is thought to be the largest impedence for the renminbi to gain an international role. It is conceivable that China will adopt a gradual and steady path to promote and enhance the RMB’s acceptance overseas without disrupting its own economic development under the consideration of the associated benefits and costs. 2012-09 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26146/1/DT_2012_MOYIN.pdf MO, YIN (2012) The Potential of the Renminbi as An international Currency. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle MO, YIN
The Potential of the Renminbi as An international Currency
title The Potential of the Renminbi as An international Currency
title_full The Potential of the Renminbi as An international Currency
title_fullStr The Potential of the Renminbi as An international Currency
title_full_unstemmed The Potential of the Renminbi as An international Currency
title_short The Potential of the Renminbi as An international Currency
title_sort potential of the renminbi as an international currency
url https://eprints.nottingham.ac.uk/26146/