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The Evolution of Offshore Renminbi Trading: 2016 to 2019

Author

Listed:
  • Yin-Wong Cheung

    (City University of Hong Kong, Department of Economics and Finance, Hong Kong)

  • Louisa Grimm

    (Institute of Empirical Economic Research, Osnabrueck University, 49069 Osnabrueck, Germany)

  • Frank Westermann

    (Institute of Empirical Economic Research, Osnabrueck University, 49069 Osnabrueck, Germany)

Abstract

We study the evolution of offshore renminbi trading between 2016 and 2019. The geographical pattern of changes in offshore renminbi trading during this period is different from the one between 2013 and 2016. The pattern of changes in the 2016-2019 period, in addition to the previously reported convergence to the geographical trading pattern of all currencies, is affected by (geopolitical)disputes and trade intensity. Further, China-specific RQFII investment quota arrangements and offshore market’s equity market capitalization and level of financial development play a role in shaping the offshore RMB trading pattern.

Suggested Citation

  • Yin-Wong Cheung & Louisa Grimm & Frank Westermann, 2020. "The Evolution of Offshore Renminbi Trading: 2016 to 2019," IEER Working Papers 119, Institute of Empirical Economic Research, Osnabrueck University, revised 16 Dec 2020.
    • Handle: RePEc:iee:wpaper:wp0119
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    References listed on IDEAS

    as
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    Cited by:

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    2. Eugenio Cerutti & Haonan Zhou, 2024. "Uncovering CIP Deviations in Emerging Markets: Distinctions, Determinants, and Disconnect," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 72(1), pages 196-252, March.
    3. Zhang, Qisi & Frömmel, Michael & Baidoo, Edwin, 2024. "Donald Trump's tweets, political value judgment, and the Renminbi exchange rate," International Review of Financial Analysis, Elsevier, vol. 93(C).

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    More about this item

    Keywords

    FX Turnover; Geographical Trading Pattern; Renminbi Internationalization; Dispute; Trade Intensity;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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