CURRENCY CO-MOVEMENTS IN ASIA-PACIFIC: THE REGIONAL ROLE OF THE RENMINBI

Daniela Marconi

No GRU_2016_023, GRU Working Paper Series from City University of Hong Kong, Department of Economics and Finance, Global Research Unit

Abstract: The economic and political influence of China in the Asia-Pacific region is growing; the internationalization of the Chinese currency, the renminbi (RMB), add an additional channel of influence. This paper assesses the evolution of exchange rate co-movements against the US dollar within the region and finds that the RMB has been exerting a growing influence. The degree of influence varies considerably across currencies. On the one hand, the Indonesian rupiah, the Korean Won, the Malaysian ringgit, the Singaporean dollar, and the Taiwanese dollar show very strong co-movements with the RMB, while, on the other hand, the Australian dollar and the New Zealand dollar are not affected. Furthermore, the study confirms that Asian currencies move as if driven by an objective to stabilize the effective exchange rate, avoiding excessive appreciation against the USD.

Keywords: exchange rates; Asia-Pacific; renminbi; China (search for similar items in EconPapers)
JEL-codes: F31 F33 (search for similar items in EconPapers)
Pages: 26 pages
New Economics Papers: this item is included in nep-mon and nep-sea
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Citations: View citations in EconPapers (2)

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https://www.cb.cityu.edu.hk/ef/doc/GRU/WPS/GRU%232016-023%20Daniela.pdf (application/pdf)

Related works:
Working Paper: Currency co-movements in Asia-Pacific: the regional role of the renminbi (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cth:wpaper:gru_2016_023

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