| ID | 152516 |
| Title Proper | Renminbi internationalization in the new normal |
| Other Title Information | progress, determinants and policy discussions |
| Language | ENG |
| Author | Li, Cheng ; Zhang, Xiaojing |
| Summary / Abstract (Note) | In the present paper we explore the internationalization of the renminbi with reference to the experiences of other monetary powers, and discuss its determinants, prospects and implications for China's development in the “new normal.” Specifically, after summarizing the major progress made thus far, we conduct a regression analysis, showing that economic size and financial conditions are significant determinants of the international currency status, while inertia and other unobserved factors also play important roles. These empirical findings enable us to undertake a scenario analysis focusing on the renminbi's potential to become a global reserve currency. Based on this quantitative research, we then revisit China's policy initiatives designed to promote its currency overseas. In our view, the internationalization of the renminbi, along with financial deepening and liberalization, should be regarded as a means to achieve China's goal of reaching a more sustainable and balanced model of development. |
| `In' analytical Note | China and World Economy Vol. 25, No.2; Mar-Apr 2017: p.22-44 |
| Journal Source | China and World Economy 2017-04 25, 2 |
| Key Words | Renminbi ; Financial Development ; Panel Data ; International Currency |