The Role of Offshore Financial Centers in the Process of Renminbi Internationalization
The People’s Republic of China (PRC) has been quite aggressive recently in promoting the international use of its currency, the renminbi. Historical experience suggests that an active offshore market is essential for a global currency. Indeed, anecdotal evidence affirms the role of offshore markets in pushing the renminbi currency to the world. One should not, however, overplay the contribution of offshore markets. While offshore markets offer the opportunities to experiment with the global use of the currency, the overseas acceptance of the renminbi is ultimately determined by both internal and external economic forces, and geopolitical factors. With its relatively small size, the offshore renminbi is not likely to pressure the PRC and alter its financial liberalization policy. A well-organized offshore renminbi market will complement the PRC’s renminbi internationalization policy, but it is not possible to raise the currency’s global status beyond the level justified by its economic and political attributes.
|Date of creation:||06 Apr 2014|
|Date of revision:|
|Contact details of provider:|| Postal: Kasumigaseki Building 8F, 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6008, Japan|
Fax: (81-3) 3593-5571
Web page: http://www.adbi.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cheung, Yin-Wong, 2011.
"Renminbi Going Global,"
Santa Cruz Department of Economics, Working Paper Series
qt2qn810hg, Department of Economics, UC Santa Cruz.
- Yin‐Wong Cheung & Guonan Ma & Robert N. McCauley, 2011.
"Renminbising China'S Foreign Assets,"
Pacific Economic Review,
Wiley Blackwell, vol. 16(1), pages 1-17, 02.
- Yin-Wong Cheung & Guonan Ma & Robert N. McCauley, 2010. "Renminbising China's Foreign Assets," CESifo Working Paper Series 3009, CESifo Group Munich.
- Yin-Wong Cheung & Guonan Ma & Robert N. McCauley, 2010. "Renminbising China's Foreign Assets," Working Papers 162010, Hong Kong Institute for Monetary Research.
- Tamim Bayoumi & Franziska Ohnsorge, 2013. "Do Inflows or Outflows Dominate? Global Implications of Capital Account Liberalization in China," IMF Working Papers 13/189, International Monetary Fund.
- Robert McCauley, 2011.
"Renminbi internationalisation and China's financial development,"
BIS Quarterly Review,
Bank for International Settlements, December.
- Robert N. McCauley, 2013. "Renminbi internationalisation and China’s financial development," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 11(2), pages 101-115, May.
- Linda S. Goldberg & Cedric Tille, 2005.
"Vehicle Currency Use in International Trade,"
NBER Working Papers
11127, National Bureau of Economic Research, Inc.
- Yin-Wong Cheung & Risto Herrala, 2013.
"China's Capital Controls - Through the Prism of Covered Interest Differentials,"
142013, Hong Kong Institute for Monetary Research.
- Yin-Wong Cheung & Risto Herrala, 2014. "China's Capital Controls: Through the Prism of Covered Interest Differentials," Pacific Economic Review, Wiley Blackwell, vol. 19(1), pages 112-134, 02.
- Cheung, Yin-Wong & Herrala, Risto, 2013. "China's capital controls : Through the prism of covered interest differentials," BOFIT Discussion Papers 22/2013, Bank of Finland, Institute for Economies in Transition.
- Yin-Wong Cheung & Risto Herrala, 2013. "China's Capital Controls - Through the Prism of Covered Interest Differentials," CESifo Working Paper Series 4377, CESifo Group Munich.
- Yongding Yu, 2012. "Revisiting the Internationalization of the Yuan," Macroeconomics Working Papers 23311, East Asian Bureau of Economic Research.
- Guonan Ma & RobertN McCauley, 2008. "Efficacy Of China'S Capital Controls: Evidence From Price And Flow Data," Pacific Economic Review, Wiley Blackwell, vol. 13(1), pages 104-123, 02.
- Yu, Yongding, 2012. "Revisiting the Internationalization of the Yuan," ADBI Working Papers 366, Asian Development Bank Institute.
- Yongding Yu, 2012. "Revisiting the Internationalization of the Yuan," Finance Working Papers 23311, East Asian Bureau of Economic Research.
- Barry Eichengreen, Marc Flandreau, 2010.
"The Federal Reserve, the Bank of England, and the Rise of the Dollar as an International Currency, 1914-1939,"
IHEID Working Papers
16-2010, Economics Section, The Graduate Institute of International Studies.
- Barry Eichengreen & Marc Flandreau, 2012. "The Federal Reserve, the Bank of England, and the Rise of the Dollar as an International Currency, 1914–1939," Open Economies Review, Springer, vol. 23(1), pages 57-87, February.
When requesting a correction, please mention this item's handle: RePEc:ris:adbiwp:0472. 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: (Marc Benger)
If references are entirely missing, you can add them using this form.