IDEAS home Printed from https://ideas.repec.org/a/ntu/ntugeo/vol9-iss2-17-26.html
   My bibliography  Save this article

The Internationalization of Emerging Economy Currencies: An Alternative to Protectionism?

Author

Listed:
  • Sorin-Nicolae Curca

    (Institute for World Economy, Romanian Academy, Academy House, 13th September Path, no. 13, Bucharest)

Abstract

The developments after the crisis of 2008-2009 highlighted the vulnerabilities of the International Monetary System. In this context, some countries considered reducing their dependence on the US dollar and increasing the role of their currency internationally. This paper examines whether the internationalization of emerging countries’ currencies has been an alternative to protectionism. To this end, we took into account the relevance of the currencies of emerging economies internationally and the internationalization of the renminbi. As far as the internationalization of the Chinese currency is concerned, we presented the political and economic motivations, the main paths, and the main evolutions.

Suggested Citation

  • Sorin-Nicolae Curca, 2021. "The Internationalization of Emerging Economy Currencies: An Alternative to Protectionism?," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 9(2), pages 17-26, December.
    • Handle: RePEc:ntu:ntugeo:vol9-iss2-17-26
    as

    Download full text from publisher

    File URL: http://www.globeco.ro/wp-content/uploads/vol/split/vol_9_no_2/geo_2021_vol9_no2_art_002.pdf
    File Function: First version, 2021
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:zbw:bofitp:2019_019 is not listed on IDEAS
    2. Mr. Faisal Ahmed & Mr. Shengzu Wang & Mrs. Isabelle Mateos y Lago & Samar Maziad & Stephanie Segal & Pascal Farahmand & Mr. Udaibir S Das, 2011. "Internationalization of Emerging Market Currencies: A Balance Between Risks and Rewards," IMF Staff Discussion Notes 2011/017, International Monetary Fund.
    3. Guonan Ma & Agustin Villar, 2014. "Internationalisation of emerging market currencies," BIS Papers chapters, in: Bank for International Settlements (ed.), The transmission of unconventional monetary policy to the emerging markets, volume 78, pages 71-86, Bank for International Settlements.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Delphine Lahet & Stéphanie Prat, 2021. "Internationalisation of emerging market currencies and original sin: Empirical evidence," The World Economy, Wiley Blackwell, vol. 44(7), pages 1973-2003, July.
    2. Chiappini, Raphaël & Lahet, Delphine, 2020. "Exchange rate movements in emerging economies - Global vs regional factors in Asia," China Economic Review, Elsevier, vol. 60(C).
    3. Katarzyna Glinka, 2016. "Adaptations Within The Financial Market In China After Global Financial Crisis," Oeconomia Copernicana, Institute of Economic Research, vol. 7(4), pages 565-591, December.
    4. Ozturk, Fatma & Keles, Melek & Evrendilek, Fatih, 2016. "Quantifying rates and drivers of change in long-term sector- and country-specific trends of carbon dioxide-equivalent greenhouse gas emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 823-831.
    5. Eswar S. Prasad & Lei Ye, 2011. "The renminbi’s role in the global monetary system," Proceedings, Federal Reserve Bank of San Francisco, issue Nov, pages 127-197.
    6. Ran Xiao, 2019. "Essays on Price Discovery and Volatility Dynamics in Emerging Market Currencies," PhD Thesis, Finance Discipline Group, UTS Business School, University of Technology, Sydney, number 5-2019, January-A.
    7. Mingming Li & Fengming Qin & Zhaoyong Zhang, 2021. "Short-Term Capital Flows, Exchange Rate Expectation and Currency Internationalization: Evidence from China," JRFM, MDPI, vol. 14(5), pages 1-15, May.
    8. Wang, Qi & Zhang, Chunyu & Ding, Yi & Xydis, George & Wang, Jianhui & Østergaard, Jacob, 2015. "Review of real-time electricity markets for integrating Distributed Energy Resources and Demand Response," Applied Energy, Elsevier, vol. 138(C), pages 695-706.
    9. Ito, Hiro & Kawai, Masahiro, 2016. "Trade invoicing in major currencies in the 1970s–1990s: Lessons for renminbi internationalization," Journal of the Japanese and International Economies, Elsevier, vol. 42(C), pages 123-145.
    10. Adrian Amelung, 2014. "Emissionshandelssysteme für Treibhausgase: Funktionsweise und Vergleich bestehender Ausprägungsformen," Otto-Wolff-Institut Discussion Paper Series 05/2014, Otto-Wolff-Institut für Wirtschaftsordnung, Köln, Deutschland.
    11. Hiro Ito & Cesar M. Rodriguez, 2020. "Clamoring for greenbacks: Explaining the resurgence of the U.S. dollar in international debt," International Finance, Wiley Blackwell, vol. 23(3), pages 370-391, December.
    12. Zhang, Liqing & Tao, Kunyu, 2014. "The Benefits and Costs of Renminbi Internationalization," ADBI Working Papers 481, Asian Development Bank Institute.
    13. Ito, Hiro & Chinn, Menzie, 2014. "The Rise of the “Redback” and the People’s Republic of China’s Capital Account Liberalization: An Empirical Analysis of the Determinants of Invoicing Currencies," ADBI Working Papers 473, Asian Development Bank Institute.
    14. Lin, Justin Yifu & Fardoust, Shahrokh & Rosenblatt, David, 2012. "Reform of the international monetary system : a jagged history and uncertain prospects," Policy Research Working Paper Series 6070, The World Bank.
    15. Sébastien Kott‎ & Lionel Zevounou & Aurélien Camus & Vincent Mazzocchi, 2015. "Deuxième rapport d'étape CRDP-CNoCP," Working Papers hal-01630825, HAL.
    16. Delphine Lahet & Stéphanie Prat, 2023. "Local-currency debt and currency internationalization dynamics: A nonlinear framework," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(1), pages 215-254, February.
    17. Batten, Jonathan A. & Szilagyi, Peter G., 2016. "The internationalisation of the RMB: New starts, jumps and tipping points," Emerging Markets Review, Elsevier, vol. 28(C), pages 221-238.

    More about this item

    Keywords

    currency internationalization; protectionism; emerging countries; renminbi (RMB); China; offshore market; RQFII;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ntu:ntugeo:vol9-iss2-17-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefan Ciucu (email available below). General contact details of provider: https://edirc.repec.org/data/feuntro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.