Internationalization of the Chinese Renminbi: An Opportunity for China
AbstractChina has taken first steps hinting at an internationalization of the Renminbi: The country has begun cautious action for opening up its capital account and allowed currency fluctuations within a certain limit between 2005 and 2008. Promoting Hong Kong as a test center for the Renminbi's internationalization is pointing in the right direction because it at least makes an offshore Renminbi market possible. Therefore, the silent re-pegging of the Renminbi to the US Dollar in 2008 was a step back. Instead of binding the Renminbi again to a foreign currency, China should gradually enable more trade with the Renminbi. Independent monetary policy and free foreign currency trading are two key pillars of the modern financial world. Liberalizing the capital account is a gradual process and should go hand in hand with the establishment of a strong Chinese financial sector. As soon as this financial sector can absorb foreign capital in a flexible, independent way, the Renminbi stands a good chance to develop into an appreciated international currency.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by DIW Berlin, German Institute for Economic Research in its journal Weekly Report.
Volume (Year): 6 (2010)
Issue (Month): 17 ()
Internationalization; Renminbi; Reserves; Currency Regime; Monetary Policy;
Find related papers by JEL classification:
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
- F30 - International Economics - - International Finance - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Prasad, Eswar & Ye, Lei (Sandy), 2012. "The Renminbi's Role in the Global Monetary System," IZA Discussion Papers 6335, Institute for the Study of Labor (IZA).
- Xiaoli Chen & Yin‐Wong Cheung, 2011.
"Renminbi Going Global,"
China & World Economy,
Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 19(2), pages 1-18, 03.
- Xiaoli Chen & Yin-Wong Cheung, 2011. "Renminbi Going Global," Working Papers 082011, Hong Kong Institute for Monetary Research.
- Cheung, Yin-Wong, 2011. "Renminbi Going Global," Santa Cruz Department of Economics, Working Paper Series qt2qn810hg, Department of Economics, UC Santa Cruz.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.