IDEAS home Printed from https://ideas.repec.org/h/pal/pmschp/978-0-230-31386-6_13.html
   My bibliography  Save this book chapter

The Nature of China’s Exchange Rate Regime and the Potential Impact on Its Financial System

In: Bank Strategy, Governance and Ratings

Author

Listed:
  • René W. H. Linden

Abstract

More than five years have passed since China moved into an exchange rate regime with reference to a basket of some major currencies on 21 July 2005. Since then, the controversies over the costs and benefits of China’s exchange rate policy have intensified. More recently, the rapidly rising US indebtedness and pursuit of its quantitative easing policy, the current Eurozone crisis and China’s role in the global macroeconomic imbalances have reignited the debate about alternative reserve currencies. Since China has emerged as the world’s second largest economy and the biggest exporter, its currency has been severely under-represented in global trade and capital markets. Therefore, in light of the current currency war with a ‘rising dragon and falling eagle’, it seems natural to talk about Renminbi (RMB)1 internationalization and its potential reserve currency role as a rival to the US dollar (USD) and other major currencies.

Suggested Citation

  • René W. H. Linden, 2011. "The Nature of China’s Exchange Rate Regime and the Potential Impact on Its Financial System," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Philip Molyneux (ed.), Bank Strategy, Governance and Ratings, chapter 12, pages 275-299, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-0-230-31386-6_13
    DOI: 10.1057/9780230313866_13
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:pal:pmschp:978-0-230-31386-6_13. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.