RMB Internationalization.What is in for Taiwan
AbstractAlong with the steady pace of RMB internationalization, this paper proposes Taiwan as a potentialcandidate to become the next RMB offshore center. We review the main drivers behind Hong Kongâ€™s success and set the reasons why Taiwan could follow such steps. First, Taiwanâ€™s economic ties with China are substantial both in trade and FDI and they are set to be increasingly supported by the improved political relations across the Strait. Second, the relatively large size of Taiwanâ€™s financial system, especially if we consider the enormous pool of savings in its investment and insurance companies, and its well-functioning infrastructure, should provide the necessary elements for an off-shore RMB market to develop. Finally, following Hong Kongâ€™s experience, we offer some suggestions on possible pre-conditions for Taiwan to become the next RMB offshore center.
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Bibliographic InfoPaper provided by BBVA Bank, Economic Research Department in its series Working Papers with number 1206.
Length: 10 pages
Date of creation: Apr 2012
Date of revision:
RMB Internationalization; Offshore RMB market;
Find related papers by JEL classification:
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-29 (All new papers)
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