As the Chinese economy continues to develop,China is becoming a more active player in the world economy,and the RMB is being more widely used in international markets.In this paper we use indicators representing the ...As the Chinese economy continues to develop,China is becoming a more active player in the world economy,and the RMB is being more widely used in international markets.In this paper we use indicators representing the RMB’s functions of pricing,settlement and reserve to create an RMB Internationalization Index(RII)to evaluate the degree of the internationalization of the currency.We calculate the RII levels in 2010 and 2011,and find that the RII increased dramatically during these two years.However,when compared to the currencies of developed countries,the RMB is far from achieving complete internationalization.We propose a"three-step development"strategy for the RMB to be internationalized.展开更多
Using principal component analyses, this paper constructs two internationalization indices for the renminbi （RMB） and 32 other major currencies. We find that the RMB＇s currency internationalization degree index （C...Using principal component analyses, this paper constructs two internationalization indices for the renminbi （RMB） and 32 other major currencies. We find that the RMB＇s currency internationalization degree index （CIDI） is still low, and far behind the 4 most important international currencies. In 2009, it was ranked 18th among all important international currencies. However, in terms of the currency internationalization prospect index （C1PI）, the RMB has remained the world ＂s fifih highest since 2006. Although it is still far behind the US dollar and the euro, surpassing the ranking of the yen and the pound is possible in the near future. The dramatic difference in the ranking between the CIDI and the CIPI is a result of China＇s tight capital account control, the usage continui01 of international currency due to network externalities, and the narrow foreign exchange and imperfect financial markets. Hence, to a large degree, the RMB ＇s potential as an international currency depends on China＇s capital account liberalization.展开更多
文摘As the Chinese economy continues to develop,China is becoming a more active player in the world economy,and the RMB is being more widely used in international markets.In this paper we use indicators representing the RMB’s functions of pricing,settlement and reserve to create an RMB Internationalization Index(RII)to evaluate the degree of the internationalization of the currency.We calculate the RII levels in 2010 and 2011,and find that the RII increased dramatically during these two years.However,when compared to the currencies of developed countries,the RMB is far from achieving complete internationalization.We propose a"three-step development"strategy for the RMB to be internationalized.
文摘Using principal component analyses, this paper constructs two internationalization indices for the renminbi （RMB） and 32 other major currencies. We find that the RMB＇s currency internationalization degree index （CIDI） is still low, and far behind the 4 most important international currencies. In 2009, it was ranked 18th among all important international currencies. However, in terms of the currency internationalization prospect index （C1PI）, the RMB has remained the world ＂s fifih highest since 2006. Although it is still far behind the US dollar and the euro, surpassing the ranking of the yen and the pound is possible in the near future. The dramatic difference in the ranking between the CIDI and the CIPI is a result of China＇s tight capital account control, the usage continui01 of international currency due to network externalities, and the narrow foreign exchange and imperfect financial markets. Hence, to a large degree, the RMB ＇s potential as an international currency depends on China＇s capital account liberalization.
