The rise of Renminbi in Asia: Evidence from Network Analysis and SWIFT dataset

Tao Liu, Xiaosong Wang and Wing Thye Woo

Journal of Asian Economics, 2022, vol. 78, issue C

Abstract: The rise of Renminbi (RMB) is one of the significant changes of the international monetary system since the 2008 global financial crisis. Through its economic influence in trade and direct investment, China has promoted the international use of RMB in both the global market and the regional market of East Asia. This paper documents the progress of RMB internationalization with the settlement currency information from the SWIFT dataset. Specifically, we conduct a network analysis to study the spillover effects among USD, EUR, GBP, JPY and RMB. From October 2010 to February 2018, the influence of RMB is found to be minimal in the global market, but dominant within ASEAN+3, especially for transactions related with real economy. These results indicate that RMB has become an influential regional currency, but it remains far from a truly international currency with global prominence.

Keywords: RMB internationalization; Network analysis; Spillover effect (search for similar items in EconPapers)
JEL-codes: F33 G15 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:78:y:2022:i:c:s1049007821001597

DOI: 10.1016/j.asieco.2021.101431

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