Political Science

Renminbi Internationalization

Achievements, Prospects, and Challenges

Author: Barry Eichengreen,Masahiro Kawai

Publisher: Brookings Institution Press

ISBN: 0815726120

Category: Political Science

Page: 388

View: 2589

Meet the next global currency: the Chinese renminbi, or the "redback." Following the global financial crisis of 2008, China's major monetary policy objective is the internationalization of the renminbi, that is, to create an inter-national role for its currency akin to the international role currently played by the U.S. dollar. Renminbi internationalization is a hot topic, for good reason. It is, essentially, a window onto the Chinese government's aspirations and the larger process of economic and financial transformation. Making the renminbi a global currency requires rebalancing the Chinese economy, developing the country's financial markets and opening them to the rest of the world, and moving to a more flexible exchange rate. In other words, the internationalization of the renminbi is a monetary and financial issue with much broader supra-monetary and financial implications. This book offers a new perspective on the larger issues of economic, financial, and institutional change in what will eventually be the world's largest economy.
Business & Economics

RMB Internationalization

O+L5022nshore/Offshore Links

Author: Samar Maziad,Joong Shik Kang

Publisher: International Monetary Fund

ISBN: 1475513623

Category: Business & Economics

Page: 36

View: 6217

Among emerging market currencies, the RMB holds the most potential to become widely used internationally, due to China‘s large economic size, diversified trade structure and network, macroeconomic stability, and high growth rates - both current and expected. Yet, foreign access to RMB-denominated assets that could act as global stores of value remains limited due to extensive restrictions on capitals flows. At the same time, the rapid expansion of RMB trade settlement and issuance of RMB-denominated bonds by the Chinese government and corporates in Hong Kong, SAR have created some feedback channels across onshore (CNY) and offshore (CNH) RMB markets. We employed a bivariate GARCH model to understand the inter-linkages between onshore and offshore markets and found that, while developments in the onshore spot market exert an influence on the offshore spot market, offshore forward rates have a predictive impact on onshore forward rates. We also find evidence of volatility spillovers between two markets. Overtime, those spillover channels would be expected to grow as the offshore market further develops.
Business & Economics

Internationalization of the RMB

Establishment and Development of RMB Offshore Markets

Author: International Monetary Institute,

Publisher: Routledge

ISBN: 1317228332

Category: Business & Economics

Page: 250

View: 892

As from 2012, the International Monetary Institution (IMI) of the Renmin University of China publishes annual reports on the internationalization of RMB. This series of annual reports create and publish the RMB Internationalization Index (RII). Besides, they focus on one topic in each year's report. This book focuses on the offshore RMB markets. It studies several major international currencies' historical developments to summarize theoretical implications between currency internationalization process and its offshore market development. It reviews the recent development of RMB offshore markets, identifies key opportunities and challenges, and proposes some suggestions to policy makers and market practitioners. The RII will continue to rise as the RMB plays a more and more important role in international trades and financial transactions. The establishment and development of RMB offshore markets will facilitate the internationalization process of the RMB.
Political Science

Is China Ready to Challenge the Dollar?

Internationalization of the Renminbi and Its Implications for the United States : a Report of the CSIS Freeman Chair in China Studies

Author: Melissa Murphy,Wen Jin Yuan

Publisher: CSIS

ISBN: 0892065907

Category: Political Science

Page: 22

View: 3446

Amid the fallout from the global financial crisis, much has been written about whether the United States can continue as the world's predominant economic power and whether the emerging BRIC economies, particularly China, are poised to challenge the current financial and economic architecture. In recent months, speculation has focused on the future of the U.S. dollar, largely due to comments by senior Chinese officials that have led some observers to conclude that the renminbi is set to usurp the dollar's place as the world's reserve currency.Although such headlines make thrilling copy, Melissa Murphy and Wen Jin Yuan argue that it would be a mistake to conclude that China is ready to ditch the dollar anytime soon, let alone seek to replace the dollar with the renminbi as a reserve currency. Beijing has accumulated around 1.4 trillion in U.S. dollar reserves and is keen to avoid any precipitous decline in the dollar's value--which would in turn devalue its own holdings. But, while China is still a long way from challenging the dollar's global reserve currency status, as the largest holder of U.S. debt, Beijing is undoubtedly nervous about the prospect of a weaker dollar and is taking steps to diversify its reserves, as well as to internationalize the renminbi. There also seems little doubt that in the next decade China will emerge as a major player in the international financial system. Given the strategic geopolitical and economic implications of these developments, this report attempts to provide a clearer understanding of what is motivating Beijing's current moves, where its policy is likely headed, and the implications for the United States.
Business & Economics

The Internationlization of the Renminbi

Author: International Monetary Institute

Publisher: Routledge

ISBN: 113464437X

Category: Business & Economics

Page: 264

View: 4026

The recent financial crisis, rooted in the United States, has changed the world’s economic and financial structures. The Chinese government has made some arrangements in the post-crisis to ensure stable economic growth in volatile international economic environments and to protect its own interests from unfair international monetary treatments. The internationalization of Renminbi (RMB) is one of China's most important national strategies in the 21st century and is symbolic in the rise of China. This book aims to document the process and the development of the internationalization of Renminbi and to identify the challenges. The book introduces an index of internationalization of Renminbi. It also uses a comprehensive multi-variable index to determine the degree of internationalization of Renminbi. This book helps readers to understand the current status of the reformation on China’s currency system, the process of internationalization of the RMB and the current, intricate political and economic relations.
Business & Economics

Development of the Renminbi Market in Hong Kong SAR: Assessing Onshore-Offshore Market Integration

Author: Mr. R. Sean Craig,Mr. Changchun Hua,Philip Ng,Raymond Yuen

Publisher: International Monetary Fund

ISBN: 1475554427

Category: Business & Economics

Page: 25

View: 9431

Offshore use of the renminbi expanded rapidly in Hong Kong SAR as China sought to develop an international role for its currency while maintaining capital controls. This prompts two questions addressed in this paper: How far advanced is renminbi internationalization? And, what role does Chinese capital account liberalization play? The first is addressed by testing the extent of integration of offshore and onshore markets for the renminbi using a Threshold Autoregression (TAR) model and finds that there are substantial unexploited arbitrage opportunities. A VAR model is used to indentify factors contributing to this limited market integration and finds that capital controls and shifts in global market sentiment explain much of the divergence in onshore and offshore renminbi exchange rates. To address the second question, the paper shows how capital account measures have been used to promote offshore use of the renminbi more actively in the wake of the global financial crisis, but that this was done asymmetrically with controls on inflows eased to a greater extent than on outflows. It concludes that a more balanced liberalization process will sustain progress in renminbi internationalization.
Business & Economics

Internationalization of the RMB

2013 Annual Report

Author: International Monetary Institute

Publisher: Enrich Professional Pub Limited

ISBN: 9781623200961

Category: Business & Economics

Page: 365

View: 1921

Drawing upon the latest and full-range government data, Internationalization of the RMB: 2013 Annual Report is a firsthand look at China's current RMB policy and goals for full Renminbi (RMB) convertibility in the near-future. The work of International Monetary Institute (IMI), this book provides a clear picture of the RMB Internationalization Index (RII), offers recommendations and insights into the direction of China's currency reform, and explains the Triffin Dilemma and its connection to China's path for full internationalization of the RMB. Internationalization of the RMB: 2013 Annual Report is the first book to examine the history of China's drive for RMB internationalization as well as the current status of RMB convertibility.
Political Science

American Power after the Financial Crisis

Author: Jonathan Kirshner

Publisher: Cornell University Press

ISBN: 0801454786

Category: Political Science

Page: 232

View: 763

The global financial crisis of 2007–2008 was both an economic catastrophe and a watershed event in world politics. In American Power after the Financial Crisis, Jonathan Kirshner explains how the crisis altered the international balance of power, affecting the patterns and pulse of world politics. The crisis, Kirshner argues, brought about an end to what he identifies as the "second postwar American order" because it undermined the legitimacy of the economic ideas that underpinned that order—especially those that encouraged and even insisted upon uninhibited financial deregulation. The crisis also accelerated two existing trends: the relative erosion of the power and political influence of the United States and the increased political influence of other states, most notably, but not exclusively, China. Looking ahead, Kirshner anticipates a “New Heterogeneity” in thinking about how best to manage domestic and international money and finance. These divergences—such as varying assessments of and reactions to newly visible vulnerabilities in the American economy and changing attitudes about the long-term appeal of the dollar—will offer a bold challenge to the United States and its essentially unchanged disposition toward financial policy and regulation. This New Heterogeneity will contribute to greater discord among nations about how best to manage the global economy. A provocative look at how the 2007–2008 economic collapse diminished U.S. dominance in world politics, American Power after the Financial Crisis suggests that the most significant and lasting impact of the crisis and the Great Recession will be the inability of the United States to enforce its political and economic priorities on an increasingly recalcitrant world.
Business & Economics

The Oxford Companion to the Economics of China

Author: Shenggen Fan,Ravi Kanbur,Shang-Jin Wei,Xiaobo Zhang

Publisher: OUP Oxford

ISBN: 0191030236

Category: Business & Economics

Page: 448

View: 6842

China's rise as an economic powerhouse raises a number of questions that are the subject of lively debate. How did the country do it? How applicable are the lessons of China's economic reform of the past thirty years to the challenges it faces in the next three decades? What does the detailed pattern of China's success and challenges look like the sub-sectoral and sub-national levels, and what does this mean for future policy? How will China's role as a global economic player evolve? This Oxford Companion to the Economics of China presents an original collection of perspectives on the Chinese economy's past, present and future. The contributors of these entries include: the best of young Chinese researchers based in China and outside; renowned academics from the top universities in China, Europe, and North America; present and past senior officials of international agencies like the World Bank and the International Monetary Fund; senior Chinese government officials from the Centre and the Provinces; and four recipients of the Nobel Prize in Economics. The Companion consists of 99 entries written by the leading China analysts of our time. The topics covered include: The China Model, Future Prospects for China , China and the Global Economy, Trade and the Chinese Economy, Macroeconomics and Finance, Urbanisation, Industry and Markets, Agriculture and Rural Development, Land, Infrastructure and Environment, Population and Labour, Dimensions of Wellbeing and Inequality, Health and Education, Gender Equity, Regional Divergence in China, and China's Provinces: Selected Perspectives. The Editors are four global leaders in Chinese economic analysis and policy who between them have held or hold the following positions: Director General, International Food Policy Research Institute; Co-Editor, China Economic Review; President Chinese Economists Society; Assistant Director of Research at the IMF; Principal Adviser to the Chief Economist of the World Bank; and Professors of Economics at Ivy League Universities.
Business & Economics

Investing in Asian Offshore Currency Markets

The Shift from Dollars to Renminbi

Author: M. Wong,W. Chan

Publisher: Springer

ISBN: 1137034645

Category: Business & Economics

Page: 240

View: 1974

The offshore currency market is a foundation of offshore bond market, helping well-established corporations in global financing. Following the global financial tsunami in 2008 and European debt crisis in 2009-2011, this book aims to document the latest issues, challenges, trends and thoughts relating to offshore currency markets in Asia.
Business & Economics

United Kingdom: Selected Issues

Author: International Monetary Fund. European Dept.

Publisher: International Monetary Fund

ISBN: 149833055X

Category: Business & Economics

Page: 66

View: 6268

In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.
Political Science

The Financial Statecraft of Emerging Powers

Shield and Sword in Asia and Latin America

Author: L. Armijo,S. Katada

Publisher: Springer

ISBN: 1137429380

Category: Political Science

Page: 189

View: 9590

Financial statecraft' goes beyond sanctions against rogue states. The aims of financial statecraft may be defensive or offensive, its targets bilateral or systemic, and its instruments financial or monetary. Regions and countries profiled include Argentina, Venezuela, Brazil, India, Southeast Asia, China, and Japan.
Business & Economics

Renminbi Rising

A New Global Monetary System Emerges

Author: William H. Overholt,Guonan Ma,Cheung Kwok Law

Publisher: John Wiley & Sons

ISBN: 1119218969

Category: Business & Economics

Page: 248

View: 2088

Critical analysis of RMB internationalization and the coming global currency shift Renminbi Rising charts the emergence of China's internationalizing currency and provides an in-depth analysis of the global repercussions. Written by a team of renown economics researchers, this book describes the pressures that enabled the emergence of a new global monetary system and why China's Renminbi (RMB) became the default 'second in line' as the U.S. receded from leadership. Policy makers and regulators will appreciate the examination of the motivations behind those driving the shift, and financial professionals will find valuable guidance in the discussion surrounding business opportunities that the RMB brings to the table. Coverage includes the emergence of new Chinese-sponsored financial institutions, the scale of various RMB businesses and the coming transformation of the global financial system. Effective management of international monetary affairs has never been more fundamental to the global economic recovery. The rapid emergence of China's RMB is a transformative event of global significance, and this book provides the context you need to understand the depth and breadth of changes on the horizon. Understand why a new global monetary system is needed Consider the outcomes as China emerges and the U.S. recedes Learn the context and motivations behind principal players' strategies Discover the scale of opportunities presented by the rise of the RMB It is essential for finance professionals and economic policy makers to understand the drivers, progress and likely trajectory of the RMB internationalization and to fully grasp the implications for the global financial system, international business and supporting financial products and services. Renminbi Rising offers detailed analysis of the key opportunities and threats inherent in this major economic shift.
Business & Economics

China in Global Finance

Domestic Financial Repression and International Financial Power

Author: Sandra Heep

Publisher: Springer Science & Business Media

ISBN: 3319024663

Category: Business & Economics

Page: 157

View: 5594

Against the backdrop of China’s increasingly influential role in the international financial architecture, this book seeks to characterize and evaluate China’s financial power potential. It does so by analyzing the relationship between domestic financial repression and international financial power in the context of the political economy of the developmental state. On the basis of a novel theoretical framework for the analysis of the financial power potential of developmental states, the book provides an in-depth analysis of China’s approach to currency internationalization, its creditor status and its policies towards the Bretton Woods institutions while contrasting the country’s present role in global finance with the position of the Japanese developmental state in the 1980s and 1990s.
Business & Economics

Routledge Handbook of the Chinese Economy

Author: Gregory C. Chow,Dwight H. Perkins

Publisher: Routledge

ISBN: 1317663543

Category: Business & Economics

Page: 352

View: 2845

China's rapid rise to become the world's second largest economy has resulted in an unprecedented impact on the global system and an urgent need to understand the more about the newest economic superpower. The Routledge Handbook of the Chinese Economy is an advanced-level reference guide which surveys the current economic situation in China and its integration into the global economy. An internationally renowned line-up of scholars contribute chapters on the key components of the contemporary economy and their historical foundations. Topics covered include: the history of the Chinese economy from ancient times onwards; economic growth and development; population, the labor market, income distribution, and poverty; legal, political, and financial institutions; and foreign trade and investments. Offering a cutting-edge overview of the Chinese economy, the Handbook is an invaluable resource for academics, researchers, economists, graduate, and undergraduate students studying this ever-evolving field.
Business & Economics

Internationalization of the Renminbi

History, Theories and Policies

Author: Jie Zhang

Publisher: Enrich Professional Pub Limited

ISBN: 9789814298735

Category: Business & Economics

Page: 252

View: 8515

This series delves into Chinese currency reform, a crucial and inevitable policy choice of China. With the continuous rise in the status and importance of China in regional and global economies, the impact of Renminbi—the official currency of the People's Republic of China—is growing steadily. Based on recent theoretical frameworks and quantitative analyses, this series explores the relationship between Chinese banking system reform, regionalization and internationalization of Renminbi, as well as the possible cooperation between Renminbi, Yen and other Asian currencies. A thorough analysis of China’s banking industry and currency system, this exploration investigates whether the reforms made to China’s banking and currency systems are, in fact, compatible. Arguing that the banking system has a direct impact on whether the internationalization of the Renminbi can succeed, this book indentifies the relationship between the two systems and helps to formulate the appropriate reform policies.
Business & Economics

Currency Internationalization: Global Experiences and Implications for the Renminbi

Author: W. Peng,C. Shu

Publisher: Springer

ISBN: 0230245781

Category: Business & Economics

Page: 242

View: 5520

This is the first book to collect academic studies examining issues related to the potential internationalization of the Renminbi. It considers policy implications, documents the rising regional importance of the Renminbi and discusses key issues in the increasing use of the Renminbi in international trade and finance.