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On the inclusion of the Chinese renminbi in the SDR basket

Agnès Bénassy-Quéré () and Damien Capelle ()
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Agnès Bénassy-Quéré: Centre d'Economie de la Sorbonne - Paris School of Economics, https://www.parisschoolofeconomics.eu/fr/benassy-quere-agnes/

Authors registered in the RePEc Author Service: Agnès Bénassy-Quéré ()

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We study the impact of a broadening of the SDR basket to the Chinese currency on the composition and volatility of the basket. Although, in the past, RMB inclusion would have had negligible impact due to its limited weight, a much more significant impact can be expected in the next decades, and more so if the Chinese currency is pegged to the US dollar. If the objective is to reinforce the attractiveness of the SDR as a unit of account and a store of value through more stability, then a broadening of the SDR to the RMB could be appropriate, provided some flexibility is introduced in the Chinese exchange-rate regime. This issue of flexibility is de facto more important than that of “free usability†to make the SDR more stable, at least in the short and medium run

Keywords: SDR; renminbi; international monetary system; foreign exchange volatility (search for similar items in EconPapers)
JEL-codes: F31 F33 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2012-11
New Economics Papers: this item is included in nep-ifn and nep-mon
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ftp://mse.univ-paris1.fr/pub/mse/CES2012/12079.pdf (application/pdf)

Related works:
Journal Article: On the inclusion of the Chinese renminbi in the SDR basket (2014) Downloads
Working Paper: On the inclusion of the Chinese renminbi in the SDR basket (2014)
Working Paper: On the inclusion of the Chinese renminbi in the SDR basket (2014)
Working Paper: On the inclusion of the Chinese renminbi in the SDR basket (2014)
Working Paper: On the Inclusion of the Chinese Renminbi in the SDR Basket (2012) Downloads
Working Paper: On the inclusion of the Chinese renminbi in the SDR basket (2012) Downloads
Working Paper: On the inclusion of the Chinese renminbi in the SDR basket (2012) Downloads
Working Paper: On the Inclusion of the Chinese Renminbi in the SDR Basket (2011) Downloads
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