Renminbi: The Internationalization of China’s Currency
Author: Sun Yaodong
Ebook ISBN: 9781844643998
May 31, 2014 English £90 €112 $145
Using stories and interesting examples, this book depicts the process of the internationalization of the main global currencies. After that, it systematically analyses the future pattern of the internalization of the Chinese currency the RMB and its possible influence on world trade and global finance. This book is very useful for professionals to understand the future of the RMB and its procedure of becoming a global currency. With the boom of China’s economy, the RMB is becoming a regional currency gradually, though still at a low level. Some predict that it will even change into a global currency. But this process cannot be easy. There are many financial problems for the government and private sectors to deal with. This book gives us a systematical analysis of those problems, especially those that emerge after the global financial crisis. There are few books that refer to this area so systematically and thoroughly. RMB internationalization is one of the most interesting financial topics now. Today, China has become the world's second largest economy, but the use of the Renminbi (RMB) in the international arena is still far from the level appropriate for the world's second largest economy. From the history of the development of the Dollar and the Euro, it is evident that the level of the international acceptance of a country's currency is closely related to the country's economic strength. When a country's currency is widely used in the international community, it reflects the fruits of that country’s economic activity, and also confirms its economic strength. At the same time, it also reflects other nations’ confidence in the stability and liquidity of the country’s currency. The Chinese government is trying to develop the RMB into a global currency and promote its internationalization to become one of the world’s core currencies, alongside the U.S. Dollar and the Euro. In just 3 years since 2010 the global offshore RMB market has shown exponential growth; the trading volume of the RMB in the global foreign exchange market grew from 0.9% to 2.2% in 2013. Although the trading volume of the RMB is still relatively small compared to that of the Euro and U.S. Dollar, the extent of international RMB payments is climbing steadily.