International Congress on Eurasian Economies

International Conference on Eurasian Economies

10-12 July 2017 – Istanbul, TURKEY

Paper detail

Paper ID : 1945
Status : Paper published
Language : Turkish
Topic : Macroeconomics
Presenter: Prof. Dr. Müslüme Narin
Session : 3B Finans I

International Monetary System and the Emergence of Renminbi
Uluslararası Para Sistemi ve Renminbi'nin Yükselişi

Abstract

After the 2008 crisis International Monetary System (IMS) entered a period of change. The system under hegemony of dollar criticized in financial markets with regards to instability and lack of confidence. Whereas IMF argued that the IMS should be restructured in emerging markets, in the report of World Bank it was estimated that in the future of IMS a multipolar multiple currency system which includes Dollar, Euro and Renminbi (RMB) will improve (World Bank, 2011: xii). BRICS countries wanted diversify, especially, the Chinese reserves, but the Executive Board of IMF rejected SDR basket to be expanded until 30 November 2015. With the decision taken on this date, it took Chinese national currency RMB into SDR basket since the date of 1 October 2016. After this decision, the value of SDR has been composed of the sum of the currencies of US dollar, Euro, Chinese RMB (yuan), Japanese yen and pound sterling. Thereby, in SDR basket Chinese national currency ranked thirdly by weight. The purpose this paper is to discuss the ever-increasing importance of Chinese national currency RMB in IMS. In this direction, at first, the formation and development of SDR will be informed, then the direction of RMB towards the SDR basket will be discussed, after that, the appearance of the idea of RMB’s internationalization and the period of internationalization of RMB will be addressed. Finally, an assessment will be made about RMB’s being a means of payment and international financial asset in foreign trade.

JEL codes: B22, E52, E42

Narin, Müslüme, Öznazik, Halil Alpay (2017). "International Monetary System and the Emergence of Renminbi" in Proceedings of International Conference of Eurasian Economies 2017, pp.237-245, Istanbul, TURKEY.

DOI: https://doi.org/10.36880/C08.01945

Full paper in PDF format.

Session 3B: Finans I

Eurasian Economists Association Istanbul Beykent University Kyrgyz-Turkish Manas University TIKA Turkish Central Bank Kavram Vocational High School