The Role of Offshore Financial Centers in the Process of Renminbi Internationalization

Yin-Wong Cheung

No 472, ADBI Working Papers from Asian Development Bank Institute

Abstract: The People’s Republic of China (PRC) has been quite aggressive recently in promoting the international use of its currency, the renminbi. Historical experience suggests that an active offshore market is essential for a global currency. Indeed, anecdotal evidence affirms the role of offshore markets in pushing the renminbi currency to the world. One should not, however, overplay the contribution of offshore markets. While offshore markets offer the opportunities to experiment with the global use of the currency, the overseas acceptance of the renminbi is ultimately determined by both internal and external economic forces, and geopolitical factors. With its relatively small size, the offshore renminbi is not likely to pressure the PRC and alter its financial liberalization policy. A well-organized offshore renminbi market will complement the PRC’s renminbi internationalization policy, but it is not possible to raise the currency’s global status beyond the level justified by its economic and political attributes.

Keywords: renminbi; yuan; international monetary policy; currency internationalization; offshore currency market; onshore currency market; foreign exchange; financial centers (search for similar items in EconPapers)
JEL-codes: F33 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2014-04-06
New Economics Papers: this item is included in nep-ger, nep-mon, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.adbi.org/files/2014.04.03.wp472.process ... rnationalization.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://www.adbi.org/files/2014.04.03.wp472.process.renminbi.internationalization.pdf [302 Moved Temporarily]--> https://www.adbi.org/files/2014.04.03.wp472.process.renminbi.internationalization.pdf [302 Moved Temporarily]--> https://www.adb.org/adbi/files/2014.04.03.wp472.process.renminbi.internationalization.pdf)

Related works:
Working Paper: The Role of Offshore Financial Centers in the Process of Renminbi Internationalization (2014)
Working Paper: The Role of Offshore Financial Centers in the Process of Renminbi Internationalization (2014)
Working Paper: The role of offshore financial centers in the process of Renminbi internationalization (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:ris:adbiwp:0472

Access Statistics for this paper

More papers in ADBI Working Papers from Asian Development Bank Institute Kasumigaseki Building 8F, 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6008, Japan. Contact information at EDIRC.
Bibliographic data for series maintained by ADB Institute ().