Chinese Currency Internationalization – Present and Expectations

Ramona, Orăştean

doi:10.1016/s2212-5671(13)00189-5

Cited by 6 publications

(3 citation statements)

References 8 publications

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“…The estimation results for the trade flow between the BRICS economies and the five UN groups, represented in Tables II to VI, let us conclude that the Chinese Yuan is stronger than the currencies of the other BRICS member states, such as the Russian Ruble, Indian Rupee, Brazilian Real and the South African Rhonda. This conclusion is consistent with the results of the research conducted by Orastean (2013). In fact, with the growth of China’s economy in the world, its currency has also been at a high level internationally, which is confirmed by the high coefficients of this variable compared with the currencies of the other BRICS members in the estimation of the gravity models of this research.…”

Section: Discussionsupporting

confidence: 92%

BRICS-United Nations regional groups’ trade patterns: a panel-gravity approach

Jabalameli

Rasoulinezhad

2018

JCEFTS

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Purpose The purpose of this paper is to analyze and compare the similarities in the foreign trade patterns of China and the other BRICS (Brazil, Russia, India, China and South Africa) members. Design/methodology/approach Three panel data estimations, namely, fixed effect, random effect and fully modified ordinary least squares, have been conducted in this paper based on the gravitational model of international trade for bilateral trade of each BRICS member with five United Nations (UN) regional groups from 2001 to 2015. Findings The results revealed that Russia has a dissimilar trade pattern, based on the Heckscher–Ohlin (H-O) framework, with these five regional groups, while the other BRICS members follow the Linder hypothesis. Furthermore, it was found that China has a faster pace of globalization, while the rest of the BRICS members have experienced regionalization rather than globalization. In addition, geographical distance, as a proxy for transportation cost, has a weaker negative effect on the trade patterns of China and India, which makes the trade patterns of BRICS members dissimilar. Originality/value To the best of the authors’ knowledge, this paper is the first attempt to examine and compare the BRICS member countries’ foreign trade pattern through a gravity trade approach.

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Section: Discussionsupporting

confidence: 92%

BRICS-United Nations regional groups’ trade patterns: a panel-gravity approach

Jabalameli

Rasoulinezhad

2018

JCEFTS

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“…They then used principal component analysis to determine the weight of each indicator, and then measured the internationalization index of several major currencies in circulation worldwide. Orăştean [ 11 ] calculated the internationalization level of the corresponding currency based on the proportion of the gross domestic product (GDP) of 30 countries in the world and the proportion of foreign exchange market transactions in the country. The author found that the internationalization level of the RMB has greatly improved compared with the past, but is still at a low level compared with major international currencies.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of RMB internationalization on China’s competitiveness in financial services trade based on the VAR model: Evidence from China-US

Lei

2024

PLoS ONE

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An increase in a currency internationalization levels can positively impact its credibility in international economic activities, and expand the effective demand and optimize the supply structure for the country’s financial service trade. In this way, a state can improve its financial service trade competitiveness in the international market. This study builds a vector autoregressive model based on time-series data of China-US financial services trade from 2010 to 2021, analyzes the impact of different quantitative indicators of RMB internationalization on this trade from the impulse response results, and validates the conclusions using various inspection methods. The results show that the increase in RMB internationalization helps to narrow the China-US financial services trade balance, but with a significant lag. And this effect is heterogeneous in different dimensions, demonstrated by the fact that the development of overseas RMB securities business is more important for the level of RMB internationalization to narrow the China-US financial services trade balance. Finally, among the specific measures to improve its financial services trade, China should focus on developing the international competitiveness of the traditional RMB deposit and loan financial sector, while the competition in the overseas market for high value-added financial businesses must also not be neglected. Furthermore, China needs to implement more targeted RMB internationalization development policies at different levels in the future to provide high-quality financial services to the rest of the world and aid in the economic recovery of the world in the "post-pandemic" era.

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“…Even currency cross-border business has covered more dimensions of private use than before. However, it exists limitations comparing with a real international currency like the euro and US dollar [13]. However, the Chinese government did not cause everyone down.…”

Section: Optimistic and Pessimistic Forecastsmentioning

confidence: 99%

The Effectiveness of RMB Internationalization

Hou¹,

Huang²,

Zhang³

2021

Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

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Due to the 2008 economic crisis, the global economic and monetary system requires new blood. Hence the emergence of alternative currencies is inevitable. Based on this situation, this paper will analyze how Macroeconomic policy would influence Renminbi (RMB) being internationalization. In order to explore the result, this paper took "The Belt and Road Policy" as the main case, and after reviewing the international monetary, the research used the SWOT method to analyze RMB. The paper finally found out that China is the second-biggest economy globally, and China has a strong power to control the exchange of RMB; with that, RMB has laid a solid economic foundation and has the potential to be more internationalized. The internationalization of RMB would give more social benefits to China. However, since the internationalization would take so long, some may consider where the opportunity cost could be so high, which makes the internationalization less valuable. It does not affect the Chinese government continues to push the progress of internationalization of the RMB, but it may need longer than the exception. The implication and suggestions are also discussed at the end of this paper.

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Chinese Currency Internationalization – Present and Expectations

Cited by 6 publications

References 8 publications

BRICS-United Nations regional groups’ trade patterns: a panel-gravity approach

BRICS-United Nations regional groups’ trade patterns: a panel-gravity approach

Impact of RMB internationalization on China’s competitiveness in financial services trade based on the VAR model: Evidence from China-US

The Effectiveness of RMB Internationalization

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