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The Internationalization of Emerging Economy Currencies: An Alternative to Protectionism?

Author

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  • Sorin-Nicolae Curca

    (Institute for World Economy, Romanian Academy, Academy House, 13th September Path, no. 13, Bucharest)

Abstract

The developments after the crisis of 2008-2009 highlighted the vulnerabilities of the International Monetary System. In this context, some countries considered reducing their dependence on the US dollar and increasing the role of their currency internationally. This paper examines whether the internationalization of emerging countries’ currencies has been an alternative to protectionism. To this end, we took into account the relevance of the currencies of emerging economies internationally and the internationalization of the renminbi. As far as the internationalization of the Chinese currency is concerned, we presented the political and economic motivations, the main paths, and the main evolutions.

Suggested Citation

  • Sorin-Nicolae Curca, 2021. "The Internationalization of Emerging Economy Currencies: An Alternative to Protectionism?," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 9(2), pages 17-26, December.
    • Handle: RePEc:ntu:ntugeo:vol9-iss2-17-26
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    References listed on IDEAS

    as
    1. repec:zbw:bofitp:2019_019 is not listed on IDEAS
    2. Mr. Faisal Ahmed & Mr. Shengzu Wang & Mrs. Isabelle Mateos y Lago & Samar Maziad & Stephanie Segal & Pascal Farahmand & Mr. Udaibir S Das, 2011. "Internationalization of Emerging Market Currencies: A Balance Between Risks and Rewards," IMF Staff Discussion Notes 2011/017, International Monetary Fund.
    3. Guonan Ma & Agustin Villar, 2014. "Internationalisation of emerging market currencies," BIS Papers chapters, in: Bank for International Settlements (ed.), The transmission of unconventional monetary policy to the emerging markets, volume 78, pages 71-86, Bank for International Settlements.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    currency internationalization; protectionism; emerging countries; renminbi (RMB); China; offshore market; RQFII;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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