Effects of RMB Internationalization on China’s Finance Industry

Ba, Shusong; Wu, Bo; Ping, Yuan; Wang, Miao; Yin, Zhuqing

doi:10.1057/9780230245785_8

Cited by 4 publications

(11 citation statements)

References 19 publications

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“…What is more, even though we cannot testify to the nonlinear effect in the previous regression, due the sample size, many studies have revealed a non-monotonous effect, arguing that the long-run effect will be greater than the short-term effect (Ba et al 2010;Papaioannou and Portes 2008). Third, RMB internationalization would allow PRC firms and financial institutions to borrow in RMB, which may reduce costs in two ways.…”

Section: The Case Of the People's Republic Of Chinamentioning

confidence: 88%

“…), the benefit of seigniorage income after the PRC's capital account liberalization might be small. Ba et al (2010) analyzed the impact of RMB internationalization on the PRC's finance industry, including the banking sector, the stock market, the bond market, and insurance. They demonstrated that the effects of RMB internationalization on the PRC's financial industry will be longlasting and profound.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Benefits and Costs of Renminbi Internationalization

Zhang

Tao

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. In this report, "$" refers to US dollars, unless otherwise stated.The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of ADBI, ADB, its board of directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan AbstractDespite the increasing recognition that the renminbi (RMB) may eventually become a key global currency, several important questions remain to be answered. This paper analyzes the benefits and costs of the RMB becoming an international currency. The benefits include reduced exchange risk, promotion of the development of the financial market, and expansion of firms in the People's Republic of China. The costs include general costs, which complicate monetary policy and exchange rate policy, and several transitional risks. We argue that the benefits of RMB internationalization should surpass its costs, particularly in the long run, and provide comprehensive policy choices for a sustainable process of RMB internationalization. JEL Classification: F42, F31, F36 ADBI Working Paper 481Zhang and Tao

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Section: The Case Of the People's Republic Of Chinamentioning

confidence: 88%

Section: Literature Reviewmentioning

confidence: 99%

The Benefits and Costs of Renminbi Internationalization

Zhang

Tao

2014

SSRN Journal

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“…Certainly, Chinese officials hold lots of low-yielding US public bonds. Also, growing international use of the renminbi poses the question of benefits to China (Ba et al, 2010;Hai and Yao 2010;Genberg 2012).…”

Section: Introductionmentioning

confidence: 99%

Does the US dollar confer an exorbitant privilege?

McCauley

2015

Journal of International Money and Finance

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“…Em termos precisos é difícil estabelecer uma data para a decisão do governo chinês de internacionalizar a moeda, sendo comum citar o compromisso feito pelo governo, ainda em 1993, de garantir a total conversibilidade da conta capital e financeira chinesa no fim do século xx (Ba, et al, 2010). Medidas foram tomadas a partir de então, como a reforma do câmbio em 1994/1995 e o estabelecimento da conversibilidade da conta corrente em 1996 (Hai & Yao, 2010).…”

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“…Contudo, a crise financeira asiática de 1997 levou o governo a voltar atrás no compromisso de tornar conversível sua conta capital e financeira devido a percepção de que tal processo poderia criar vulnerabilidades para a economia chinesa. O próximo impulso para a internacionalização do rMb só viria com a ascensão a oMc em 2001 (Park, 2016;Ba, et al, 2010), momento em que o país aumentou sua escala de comércio e as oportunidades para celebrar Acordos de Livre Comércio (ALcs) e Comprehensive Economic Partnership Agreements (cepAs) (o que poderia gerar demanda para o uso internacional da moeda).…”

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Renminbi Internationalization: Domestic Challenges and External Implications

Sousa

2020

DESAFÍOS

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En este trabajo se investiga el proceso de inserción de la moneda china, el renminbi (rmb), en el Sistema Monetario Internacional (smi). Al analizar el histórico de internacionalización del rmb y los instrumentos que el gobierno chino ha utilizado para esto, se observó que China impulsa su moneda por medio de acciones que intentan evitar una sobreexposición de la cuenta capital y financiera, y, por lo tanto, el impacto negativo que los mercados, dominados por los agentes de Wall Street, pueden producir sobre su economía. De este modo, el proceso de internacionalización del rmb es diferente del de todas las monedas que pasaron por internacionalización durante la égida del Dollar Wall Street Regime (dwsr), pues no puede ser sustancialmente controlado por los mercados internacionales. Se interpreta así que esa inserción monetaria puede ser vista como una forma de contestación a los mercados financieros globales, al papel del dólar y al ejercicio del poder de Estados Unidos en el sistema financiero y monetario.

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Effects of RMB Internationalization on China’s Finance Industry

Cited by 4 publications

References 19 publications

The Benefits and Costs of Renminbi Internationalization

The Benefits and Costs of Renminbi Internationalization

Does the US dollar confer an exorbitant privilege?

Renminbi Internationalization: Domestic Challenges and External Implications

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