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Factors Determining the Globalization of Renminbi

Author

Listed:
  • Ainur Sabyr

    (Faculty of Business and Management, Asia Pacific University of Technology and Innovation, Kuala Lumpur, Malaysia.)

  • Behrooz Gharleghi

    (Faculty of Business and Management, Asia Pacific University of Technology and Innovation, Kuala Lumpur, Malaysia.)

  • Benjamin Chan Yin Fah

    (Faculty of Business and Management, Asia Pacific University of Technology and Innovation, Kuala Lumpur, Malaysia.)

Abstract

The Renminbi also known as RMB is the main currency of China. The main purpose of this study is to find the major factors that may cause RMB to be used in globe. Therefore this paper is analyzing the internalization of the RMB currency, the improvements of the reserve currency in China, as well as the capital account convertibility to determine whether RMB can be a global currency. To identify these variables, correlation analysis as well as regression analysis using SPSS are applied. The final result reveals that there is a strong relationship between reserve currency and capital account convertibility towards the globalization of the RMB.

Suggested Citation

  • Ainur Sabyr & Behrooz Gharleghi & Benjamin Chan Yin Fah, 2015. "Factors Determining the Globalization of Renminbi," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(3), pages 11-18, March.
  • Handle: RePEc:mir:mirbus:v:5:y:2015:i:3:p:11-18
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    References listed on IDEAS

    as
    1. Benjamin Cohen, 2012. "The Benefits and Costs of an International Currency: Getting the Calculus Right," Open Economies Review, Springer, vol. 23(1), pages 13-31, February.
    2. Paul R. Krugman, 1984. "The International Role of the Dollar: Theory and Prospect," NBER Chapters,in: Exchange Rate Theory and Practice, pages 261-278 National Bureau of Economic Research, Inc.
    3. Menzie Chinn & Jeffrey A. Frankel, 2007. "Will the Euro Eventually Surpass the Dollar as Leading International Reserve Currency?," NBER Chapters,in: G7 Current Account Imbalances: Sustainability and Adjustment, pages 283-338 National Bureau of Economic Research, Inc.
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