Status quo crisis again? RMB challenges and dollar hegemony

Yong Wook Lee and Kyuteg Lim

New Political Economy, 2024, vol. 29, issue 5, 709-732

Abstract: Despite the slow process of RMB internationalisation over the last decade, we make an empirical argument that China has recently intensified the RMB’s international and domestic capacity to make it a formidable challenger to the dollar as a global currency in the medium and long-term range. We highlight that China has made substantial progress in expanding the RMB currency network and institutionalising a deep and open domestic financial market, the two most severe obstacles emphasised by the skeptics on RMB internationalisation. In developing this argument, we draw on the ‘credit theory’ of money and explain the global expansion of the RMB currency network in terms of the external and internal production of credit and debt relations denominated in the RMB across borders. Our empirical findings suggest that the pace of the growing foreign demand for RMB-denominated assets has recently taken off.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13563467.2024.2332348 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:cnpexx:v:29:y:2024:i:5:p:709-732

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/cnpe20

DOI: 10.1080/13563467.2024.2332348

Access Statistics for this article

New Political Economy is currently edited by Professor Colin Hay

More articles in New Political Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().