All of a sudden, the renminbi is being touted as the next big international currency. Just in the last year or two, the Chinese currency has begun to internationalise along a number of dimensions. A renminbi bond market has grown rapidly in Hong Kong, and one in renminbi bank deposits. Some of China’s international trade is now invoiced in the currency.
The rise of the renminbi as international currency: Historical precedents
Jeffrey Frankel, 10 October 2011
Topics: International finance
Tags: China, dollar, renminbi, reserve currency
From lender of last resort to global currency? Sterling lessons for the US dollar
Marc Flandreau, Stefano Ugolini, 23 July 2011
Financial crises are bad news for the status of the currency in which the turmoil is denominated, right?
So the US-made financial crisis must be bad for the dollar, right?
And especially so because of the expansive dollar monetary policy that has ensued, right?
Topics: Economic history, Global crisis, International finance
Tags: Bank of England, economic history, exchange-rate policy, reserve currency, US dollar
The case for regular SDR issues: Fixing inconsistency in balance-of-payments targets
John Williamson, 2 October 2009
The Special Drawing Right (SDR) was created by the IMF in the late 1960s as its very own gold-substitute and first allocated to IMF members in 1970. Subsequent issues in the following two years were agreed at the same time, and then a new 3-year period of modest allocations occurred in 1979-81.
Topics: Global economy, Global governance
Tags: IMF, reserve currency, Special drawing rights
Shifting wealth: Is the US dollar Empire falling?
Helmut Reisen, 20 June 2009
Just ahead of the G20 London Summit in April, Zhou Xiaochuan (China's central bank governor) proposed replacing the US dollar as the international reserve currency with a new global system controlled by the IMF. The main global reserve currency would be represented by a basket of significant currencies and commodities, an extended version of the Fund’s Special Drawing Rights (SDRs).
Topics: International finance
Tags: IMF, renminbi, reserve currency, US dollar
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“Development and the crisis” – a critical reading
Francisco Rodríguez, 23 February 2009
The “Development and the crisis” theme in Vox’s Global Crisis Debate provides a refreshing counterweight to current discussions’ overwhelming emphasis the effect of the crisis on developed nations.
Topics: Development, Global crisis
Tags: bank nationalisation, child poverty, developing economies, G20, Georgetown, global crisis, preschool, reserve currency, US dollar
The rise of the euro
Richard Portes, 14 June 2007
Will the euro replace the dollar as the leading international currency?
Topics: Exchange rates
Tags: euro, foreign exchange reserves, reserve currency
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