Currency co-movements in Asia-Pacific: the regional role of the renminbi

Daniela Marconi

No 341, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The economic and political influence of China in the Asia-Pacific region is growing and the internationalization of the Chinese currency, the renminbi (RMB), is adding 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 is 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 and the New Zealand dollars are not affected. Furthermore, the study confirms that Asian currencies move as if driven by the aim of stabilizing the effective exchange rate, thereby 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)
Date: 2016-07
New Economics Papers: this item is included in nep-cna, nep-mon and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Currency co-movements in Asia-Pacific: The regional role of the Renminbi (2017)
Working Paper: CURRENCY CO-MOVEMENTS IN ASIA-PACIFIC: THE REGIONAL ROLE OF THE RENMINBI
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_341_16

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