Title One currency, two markets : China's attempt to internationalize the renminbi / Edwin L.-C. Lai, Hong Kong University of Science and Technology

Published Cambridge, United Kingdom ; New York, NY, USA : Cambridge University Press, 2021

Click on the following:
Cambridge Core

Copies

Description 1 online resource (xxxvii, 307 pages) : illustrations Contents Introduction -- China's aversion to a floating exchange rate -- Why does China want to internationalize the RMB? -- China's strategy of internationalizing the RMB -- The importance of capital account liberalization -- The importance of financial sector reform -- The importance of the offshore RMB market -- The potential of the RMB as a payment currency -- The prospects of RMB internationalization Summary "The Chinese government is trying to internationalize the RMB. But what are the real reasons for doing it? Will it succeed? What are the factors working in its favor? What are the impediments? What are the implications for the rest of the world? In this book, I explain how the problem with the international monetary system since the demise of the Bretton Woods system and the recent global financial crisis prompted China to seek independence from the dollar standard. One way is to make the RMB a widely accepted currency internationally. China, however, is in an awkward position. On the one hand, it is the second largest economy and the largest trading nation in the world, and it would likely become the largest economy before long. This works in favor of the internationalization of the RMB. On the other hand, China is still an emerging economy, meaning that its financial and legal institutions are still immature compared with the more advanced system in the West. Yet, China does not want to fully integrate its financial system with the West any time soon. As currency internationalization requires the currency to be largely convertible in the capital account, this factor works against the internationalization of the RMB. Thus, China tries to internationalize its currency in its own unique way, i.e. by adopting the "one currency, two markets" approach, which entails establishing a global offshore RMB market"-- Provided by publisher Bibliography Includes bibliographical references and index Notes Description based on online resource; title from digital title page (viewed on October 06, 2021) Subject Renminbi. Money -- China. Foreign exchange -- China Capital market -- China Finance -- China Capital market Finance Foreign exchange Money Renminbi China Form Electronic book LC no. 2021000173 ISBN 9781108647236 1108647235

  Permalink