Currency Internationalization-Could The RMB Emerge as an International Reserve Currency-.pdf

1、The unprecedented success of china's economic growth in a world characterized by growingcriticism over the hegemony of US dollar in the world financial system have brought many toconsider the RMB as the future major rese

2、rve currency that will help rebalance and stabilizethe world economy. This paper empirically investigates the nexus between financialliberalization and currency internationalization and suggests that China's current capi

3、talaccount regime represents the main obstacle to the emergence of RMB as an internationalreserve can ency. The econometric analysis that emphasizes upon the study of thedeterminants of central banks reserve holdings of

4、five major reserve currencies from 1973 to1998 shows that: share of the country's economy in the world, index of financialliberalization and openness, inflation rate, country's net debtor position and networksexternaliti