Arbeitspapier
The geographic distribution of international currencies and RMB internationalization
The paper investigates the determinants of geographical distribution of international currencies in global financial market transactions. We implement a gravity model, in which international currency distribution depends on the characteristics of the source and destination countries. We find that the source country's currency is more likely to be used in the financial market transactions of the destination country if the bilateral trade and capital flows are large or the destination country's economy is the larger of the two. We also find that the level of development of the destination country's financial market and whether the two countries use a common language are important determinants of the currency distribution. In addition, our model suggests that, to be a true international currency, the renminbi should be used more extensively in the financial markets of the US and UK.
- ISBN
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978-952-323-050-7
- Language
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Englisch
- Bibliographic citation
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Series: BOFIT Discussion Papers ; No. 20/2015
- Classification
-
Wirtschaft
International Monetary Arrangements and Institutions
Financial Aspects of Economic Integration
International Financial Markets
- Event
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Geistige Schöpfung
- (who)
-
He, Qing
Korhonen, Iikka
Guo, Junjie
Liu, Fangge
- Event
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Veröffentlichung
- (who)
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Bank of Finland, Institute for Economies in Transition (BOFIT)
- (where)
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Helsinki
- (when)
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2015
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the 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
- He, Qing
- Korhonen, Iikka
- Guo, Junjie
- Liu, Fangge
- Bank of Finland, Institute for Economies in Transition (BOFIT)
Time of origin
- 2015
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