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Asia's push for monetary alternatives

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  • Noland, Marcus

Abstract

For the last quarter century, Asia has been seeking greater autonomy within the existing international monetary system. While the region has had the resources to go its own way, intraregional rivalries, and a reluctance to damage ties to the US and the International Monetary Fund, have put a damper on regional initiatives. Now the ascendency of China offers a path toward greater regional autonomy in monetary affairs. Asia, led by China, has been playing a two-track strategy pushing for greater influence within the existing global institutions, while developing its own parallel institutions such as the Chiang Mai Initiative Multilateralization, the Belt and Road Initiative, and the Asian Infrastructure Investment Bank. Use of the Chinese renminbi will likely grow as a trade invoicing currency but expanded use of the renminbi as a reserve currency is more uncertain. It is possible that the dollar-centered international financial system could evolve into a multipolar system with multiple currencies playing key roles.

Suggested Citation

  • Noland, Marcus, 2022. "Asia's push for monetary alternatives," MPRA Paper 115527, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115527
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    File URL: https://mpra.ub.uni-muenchen.de/115527/1/MPRA_paper_115527.pdf
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    References listed on IDEAS

    as
    1. Gita Gopinath & Jeremy C. Stein, 2018. "Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 542-546, May.
    2. Nicholas R. Lardy, 2019. "The State Strikes Back: The End of Economic Reform in China?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 7373, April.
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    More about this item

    Keywords

    international monetary system; Asia; China; renminbi;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East

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