This paper investigates the current situation and main reasons for the massive circulationof Chinas national currency, the renminbi (RMB), in Chinas neighboring economies. Itindicates that the expansive use of RMB in ...This paper investigates the current situation and main reasons for the massive circulationof Chinas national currency, the renminbi (RMB), in Chinas neighboring economies. Itindicates that the expansive use of RMB in Asia is the beginning of the process of RMBinternationalization. This process is being driven by a strong Chinese economy and increasedinvestors confidence in RMB. Internationalization of RMB is a high priority for the Chinesegovernment and the management of this process should depend upon a cost and benefitanalysis of the various options available. At present, due to the developing nature of theChinese economy, the internationalization of RMB is restricted to the Southeast Asia. Evenso, this regionalization will impact Chinas current capital control regime directly. In orderto eliminate the financial risks involved, transition measures should be prudentlyimplemented. To be most effective the government should coordinate the processes ofregionalization and convertibility of RMB.展开更多
文摘This paper investigates the current situation and main reasons for the massive circulationof Chinas national currency, the renminbi (RMB), in Chinas neighboring economies. Itindicates that the expansive use of RMB in Asia is the beginning of the process of RMBinternationalization. This process is being driven by a strong Chinese economy and increasedinvestors confidence in RMB. Internationalization of RMB is a high priority for the Chinesegovernment and the management of this process should depend upon a cost and benefitanalysis of the various options available. At present, due to the developing nature of theChinese economy, the internationalization of RMB is restricted to the Southeast Asia. Evenso, this regionalization will impact Chinas current capital control regime directly. In orderto eliminate the financial risks involved, transition measures should be prudentlyimplemented. To be most effective the government should coordinate the processes ofregionalization and convertibility of RMB.
