Will the Renminbi Become a World Currency?

25 Pages Posted: 17 Nov 2008

See all articles by Paul R. Masson

Paul R. Masson

affiliation not provided to SSRN

Wendy Dobson

University of Toronto - Rotman School of Management

Date Written: January 15, 2008

Abstract

China has emerged as a major power in the world economy, so it seems natural to consider whether its currency will also have a major role. However, at present it is not used internationally. We look at the factors that contribute to the international use of currencies, and focus on the aspects of China's financial system that would have to change before the renminbi emerged as an important regional or world currency. Even with significant reforms, two important questions would remain: whether the authorities would want to encourage its international use, and whether an economy with substantial party control could gain international acceptance for its currency.

Keywords: China, Renminbi, Reserve currency

JEL Classification: F30, F31, F33, O24

Suggested Citation

Masson, Paul R. and Dobson, Wendy, Will the Renminbi Become a World Currency? (January 15, 2008). China Economic Review, 2008, Available at SSRN: https://ssrn.com/abstract=1301183

Paul R. Masson

affiliation not provided to SSRN

No Address Available

Wendy Dobson (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
416-978-2451 (Phone)
N/A (Fax)

HOME PAGE: http://www.rotman.utoronto.ca/dobson/

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