Advanced Search
MyIDEAS: Login to save this paper or follow this series

Renminbi as an International Currency: Potential and Policy Considerations

Contents:

Author Info

  • Hongyi Chen

    (Hong Kong Institute for Monetary Research)

  • Wensheng Peng

    (Barclays Capital)

  • Chang Shu

    (Hong Kong Monetary Authority)

Registered author(s):

    Abstract

    The potential of the renminbi as an international currency is underpinned by the large and fast growing Chinese economy. We present empirical evidence indicating that the renminbi has already become a significant force impacting the exchange rates of the Asian currencies. We also estimate a reserve currency model and counterfactual simulations, and suggest that the renminbi's potential as a reserve currency would be comparable to that of the Japanese yen and the British pound if the Chinese currency were to become a fully convertible currency today. The evolution of the international role of the remninbi will depend importantly on the pace of the liberalisation of the restrictions on currency convertibility, which is likely to be governed by the authorities' consideration of the associated benefits and costs. In particular, we see a two-way reinforcement of currency internationalisation and financial market developments and opening in China.

    Download Info

    If 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.
    File URL: http://www.hkimr.org/uploads/publication/130/ub_sum_0_2_212_wp200918_summary.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Hong Kong Institute for Monetary Research in its series Working Papers with number 182009.

    as in new window
    Length: 1 pages
    Date of creation: Jun 2009
    Date of revision:
    Handle: RePEc:hkm:wpaper:182009

    Contact details of provider:
    Postal: 55th Floor , Two International Finance Centre , 8 Finance Street , Central, Hong Kong
    Phone: (852)2878 1978
    Fax: (852)2878 7006
    Email:
    Web page: http://www.hkimr.org
    More information through EDIRC

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Dai, Meixing, 2011. "Motivations and strategies for a real revaluation of the Yuan," MPRA Paper 30440, University Library of Munich, Germany.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hkm:wpaper:182009. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (HKIMR).

    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.