The renminbi's role in the global monetary system /

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Bibliographic Details
Author / Creator:	Prasad, Eswar.
Imprint:	Washington, D.C. : Global Economy and Development at Brookings, 2012.
Description:	viii, 78 p. : col. ill. ; 28 cm
Language:	English
Subject:	Renminbi. Currency convertibility -- China. Foreign exchange rates -- China. Capital movements -- China. Currency swaps -- China. Capital movements. Currency convertibility. Currency swaps. Foreign exchange rates. Renminbi. China.
Format:	E-Resource Print Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/9044638

Hidden Bibliographic Details
Other authors / contributors:	Ye, Lei. Brookings Institution. Global Economy and Development.
Notes:	"February 2012." "An initial version of this study was presented at the November 2011 Federal Reserve Bank of San Francisco conference on "Asia's Role in the Post-Crisis Global Economy"-- P. iii. Includes bibliographical references (p.75-78) Also available via the Brookings Institution Web site.
Summary:	Eswar Prasad's study analyzes three related but distinct concepts concerning the role of China's renminbi in the global monetary system: (i) "internationalization" of the currency; (ii) currency convertibility; and (iii) reserve currency status. Their sequencing in relation to other policy goals such as financial sector reforms and exchange rate flexibility will affect their benefit-risk tradeoffs. Prasad describes the measures taken and progress attained in each of these areas and discusses the implications of these changes in relation to the balance and sustainability of China's own economic development as well as the associated implications for the global monetary system. While China is actively promoting the internationalization of its currency, it is a long way from attaining full convertibility or meeting other prerequisites for achieving reserve currency status. Ultimately, China will proceed with capital account convertibility in its own controlled and gradual manner, with the goal being an open capital account but with significant administrative and other "soft" controls. Prasad concludes that the renminbi will play an increasingly important role in the international monetary system but is unlikely to displace the U.S. dollar anytime soon.

Table of Contents:

Executive summary
1. Introduction
2. Openness of the capital account
3. Sequencing and cost/benefit trade-offs related to capital account liberalization
4. Evaluating China on conditions for attaining global currency status
5. The renminbi's international presence
6. Implications of the renminbi's ascendance for the international monetary system
7. Conclusion
Appendix A. Changes to capital controls in China, 2004-2010
Appendix B. Recent developments pertaining to the international use of the renminbi
Appendix C. Bilateral local currency central bank swap agreements with China since 2008
Appendix D. Additions of renminbi to central bank reserves across the world

The renminbi's role in the global monetary system /

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