Arbeitspapier
The benefits and costs of renminbi internationalization
Despite the increasing recognition that the renminbi (RMB) may eventually become a key global currency, several important questions remain to be answered. This paper analyzes the benefits and costs of the RMB becoming an international currency. The benefits include reduced exchange risk, promotion of the development of the financial market, and expansion of firms in the People's Republic of China. The costs include general costs, which complicate monetary policy and exchange rate policy, and several transitional risks. We argue that the benefits of RMB internationalization should surpass its costs, particularly in the long run, and provide comprehensive policy choices for a sustainable process of RMB internationalization.
- Language
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Englisch
- Bibliographic citation
-
Series: ADBI Working Paper ; No. 481
- Classification
-
Wirtschaft
International Policy Coordination and Transmission
Foreign Exchange
Financial Aspects of Economic Integration
- Subject
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renminbi internationalization
financial development
transitional risks
international monetary system
- Event
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Geistige Schöpfung
- (who)
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Zhang, Liqing
Tao, Kunyu
- Event
-
Veröffentlichung
- (who)
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Asian Development Bank Institute (ADBI)
- (where)
-
Tokyo
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Zhang, Liqing
- Tao, Kunyu
- Asian Development Bank Institute (ADBI)
Time of origin
- 2014
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