Academic Scientific JournalsThe role of state in the internationalization of the Chinese currency
Keywords:
internationalization, state, international currencyAbstract
The internationalization of the Chinese currency remains one of the most vital characteristics of the contemporary international monetary system. The objective of the paper is to analyse the role of state in the internationalization of the renminbi. The paper assumes that this process is to a sig nificant extent a government-led, as opposed to the market-led internationalization characteristic for most key international currencies. It demonstrates the criteria of national currency internationalization and evaluates their fulfilment in the case of China. It also discusses the benefits of currency internationalization and their role in determining the Chinese strategy aimed at making the renminbi an international currency. The methods applied include, in particular, comparative analysis, descriptive statistics, and literature study. The article indicates that the Chinese state plays an important role in the internationalization of the renminbi. The strategy of renminbi inter nationalization includes promoting trade settlement and foreign direct investment settlement in renminbi as well as establishing offshore centres for renminbi and bilateral swap agreements with central banks of other countries.
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