One currency, two markets: the renminbi's growing influence in Asia-Pacific

Chang Shu, Dong He and Xiaoqiang Cheng

China Economic Review, 2015, vol. 33, issue C, 163-178

Abstract: This study presents evidence of the renminbi's growing influence in the Asia-Pacific region. The CNH market – the offshore renminbi foreign exchange market – is found to exert an effect on Asian currencies that is distinct from that of the onshore (CNY) market. Changes in the RMB/USD rates in both markets have a statistically and economically significant impact on changes in Asian currency rates against the US dollar, after controlling for other major currency moves and the transmission of China's monetary policy to the region. The continuing growth of the offshore renminbi market points to rising influence of the CNH market, but how long the independent impact will last will likely depend on China's progress in liberalising its capital account. The findings also suggest that China's regional influence is increasingly transmitted through financial channels.

Keywords: Renminbi internationalisation; Renminbi impact; Offshore markets (search for similar items in EconPapers)
JEL-codes: F31 F42 G15 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (56)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1043951X15000243
Full text for ScienceDirect subscribers only

Related works:
Working Paper: One currency, two markets: the renminbi’s growing influence in Asia-Pacific (2014)
Working Paper: One Currency, Two Markets: The Renminbi's Growing Influence in Asia-Pacific (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:33:y:2015:i:c:p:163-178

DOI: 10.1016/j.chieco.2015.01.013

Access Statistics for this article

China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

More articles in China Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().