1588I. Kudryashova (KudryashovaIV@volsu.ru),
Volgograd State University, 100, Universitetskii Prosp., 400062 Volgograd, Russian Federation
Abstract. In recent decade, the PRC has implemented a number of measures aimed at expanding the area and scope of international use of its national currency. This already ensured the inclusion of the Yuan on a par with the US dollar, Euro, Pound sterling and Japanese yen into the SDR basket. Widely used worldwide as a measure of value, means of payment and store of value, national/single currency of the United States, Euro zone, UK and Japan currently are the world’s leading currencies. The acquisition of international status is based on certain conditions that characterize the country’s reliability in the global financial system and the possibility of performing various operations in its national currency. Depending on their nature, these conditions can be divided into two groups: economic as well as institutional and organizational. On the basis of comparative analysis of conditions for improving the international status of the Yuan, and the conditions for achieving and maintaining status as a world currency of the U.S. dollar, Euro, pound sterling and Japanese yen, it is shown that China has not yet formed all necessary determinants of non-residents’ demand in national currency. Confirmation of this conclusion is shown at a lower compared to world currencies, the internationalization of the Yuan, the valuation of which is carried out on the basis of quantitative indicators used by IMF to determine whether a currency is classified as “freely usable”. Renminbi’s achievement of a world currency status is possible only in case of ensuring its full convertibility, deepening stock and debt sectors of the PRC’s financial market and can be carried out only after a time sufficient for the manifestation of external network effects, i.e. to reorient the choice of non-residents in favor of Chinese monetary unit as a measure of value, as a mean of payments and as a reserve fund.
Keywords: world currency, currency internationalization, Chinese Yuan, convertibility, financial market, international reserves, exchange rates
REFERENCES
1. Kennen P. B. The Role of the Dollar as an International Currency. New York, Group of Thirty, 1983. 40 p.
2. Tavlas G. S., Ozeki Y. The Internationalization of Currencies: An Appraisal of the Japanese Yen. Washington, IMF, Occasional Paper ¹ 90. 1992. DOI: http://dx.doi.org/10.5089/9781557751973.084. Available at: http://web.pdx.edu/~ito/Tavlas_Ozeki.pdf (accessed 30.08.2016).
3. Frankel J. Reports of the Dollar’s Demise are Greatly Exaggerated (1995). Available at: https://www.hks.harvard.edu/fs/jfrankel/RESCURR$.FA5.PDF (accessed 30.08.2016).
4. Pollard P. S. The Creation of the Euro and the Role of the Dollar in International Markets. Federal Reserve Bank of St. Louis Review, 2001, vol. 83, no. 5. Available at: http://research.stlouisfed.org/publications/review/01/09/0109pp.pdf (accessed 14.09.2016).
5. Eichengreen B. The Euro as a Reserve Currency (1997). DOI: 10.1006/jjie.1998.0411. Available at: http://eml.berkeley.edu/~eichengr/research/mantokyo.pdf (accessed 10.09.2016).
6. Moiseev S. Rubl’ kak rezervnaya valyuta [Rouble as a Reserve Currency]. Voprosy ekonomiki, 2008, no. 9, pp. 4-21.
7. Genberg Í. Currency Internationalization: Analytical and Policy Issues. Hong Kong Institute for Monetary Research (HKIMR) Working Paper ¹ 31. 2009. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1628004 (accessed 02.09.2016).
8. Narkevich S. S., Trunin P. V. Rezervnye valyuty: faktory stanovleniya i rol’ v mirovoi ekonomike [Reserve Currencies: Factors of Evolution and their Role in the World Economy]. Moscow, Gaidar Institute, 2012. 136 p.
9. Kudryashova I. V. Rol’ organizatsionnykh i institutsional’nykh uslovii v protsesse formirovaniya sovremennykh mirovykh valyut [The Role of Organizational and Institutional Conditions in the Modern World Currencies Formation]. Finansy i kredit, 2015, no. 40, pp. 44-50.
10. Chinn M., Frankel J. Will the Euro Eventually Surpass the Dollar as Leading International Reserve Currency? National Bureau of Economic Research (NBER) Working Paper ¹ 11510, 2005. Available at: http://www.nber.org/papers/w11510 (accessed 15.09.2016).
11. Kudryashova I. V. Transformatsiya ekonomicheskikh uslovii formirovaniya sovremennykh mirovykh valyut [The Transformation of the Economic Conditions of the Modern World Currencies Formation]. Finansy i kredit, 2015, no. 38, pp. 55-66.
12. UNCTAD, Data Center. Available at: http://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx (accessed 12.09.2016).
13. Chitu L., Eichengreen B., Mehl A. J. When Did the Dollar Overtake Sterling as the Leading International Currency? Evidence from the Bond Markets. National Bureau of Economic Research (NBER) Working Paper ¹ 18097, 2012. Available at: http://www.nber.org/papers/w18097 (accessed 11.08.2016).
14. World Bank, Financial Development and Structure Dataset, June 2016. Available at: http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/0,,contentMDK:20696167~pagePK:64214825~piPK:64214943~theSitePK:469382,00.html (accessed 18.08.2016).
15. Federal Reserve Bank of St. Louis, FRED Economic Data. Available at: https://fred.stlouisfed.org/ (accessed 18.08.2016).
16. Lou F. Pandy dozhdalis’ investorov [Pandas have awaited investors]. Vedomosti, 2015, no. 3924. Available at: http://www.vedomosti.ru/finance/articles/2015/09/24/610004-kitai-rinok-obligatsii (accessed 10.09.2016).
17. The Central Bank of the Russian Federation, The structure of international reserves of selected countries, January 2016 (In Russ.) Available at: http://www.cbr.ru/statistics/print.aspx?file=credit_statistics/res_str.htm&pid=svs&sid=ITM_60686 (accessed 19.09.2016).
18. Klimov D. A. Zolotoi zapas protiv “zolotovalyutnykh rezervov [Gold Reserves Against the “International Reserves”]. Finansy i kredit, 2007, no. 4, pp. 27-34.
19. Bank of China Widened the Currency Band (In Russ.) Available at: http://www.rosbalt.ru/business/2014/03/15/1244478.html (accessed 12.09.2016).
20. The New Rate of the Yuan: Why China’s Authorities Weaken the National Currency? (In Russ.) Available at: https://m.ria.ru/economy/20150811/1178150147.html (accessed 11.09.2016).
21. China Has Promised to Increase the Convertibility of the Yuan by 2020 (In Russ.) Available at: http://www.interfax.ru/business/477181 (accessed 08.09.2016).
22. International Monetary Fund, Review of the Method of the Valuation of the SDR Initial Considerations, July 16, 2015. Available at: http://www.imf.org/external/np/pp/eng/2015/071615.pdf (accessed 06.09.2016).
23. International Monetary Fund, Survey on the Holdings of Currencies in Official Foreign Currency Assets, 2015. Available at: http://www.imf.org/external/data.htm (accessed 06.09.2016).
24. International Monetary Fund, Composition of Foreign Exchange Reserves. Available at: http://data.imf.org/regular.aspx?key=41175 (accessed 06.09.2016).
25. Bank for International Settlements, 85th Annual Report 1 April 2014–31 March 2015, June 2015. Available at: http://www.bis.org/publ/arpdf/ar2015e.pdf (accessed 07.09.2016).
26. Bank for International Settlements, Triennial Central Bank Survey of foreign exchange and OTC derivatives markets in 2016, September 2016. Available at: http://www.bis.org/publ/rpfx16.htm (accessed 19.09.2016).
27. Society for Worldwide Interbank Financial Telecommunications, SWIFT RMB Monthly Tracker, November 2012. Available at: https://www.swift.com/our-solutions/compliance-and-shared-services/business-intelligence/renminbi/rmb-tracker/document-centre#topic-tabs-menu (accessed 14.08.2016).
28. Society for Worldwide Interbank Financial Telecommunications, SWIFT RMB Monthly Tracker, September 2015 – Sibos 2015 Special Edition. Available at: https://www.swift.com/our-solutions/compliance-and-shared-services/business-intelligence/renminbi/rmb-tracker/document-centre#topic-tabs-menu (accessed 14.08.2016).
29. Society for Worldwide Interbank Financial Telecommunications, SWIFT RMB Monthly Tracker, February 2015. Available at: https://www.swift.com/our-solutions/compliance-and-shared-services/business-intelligence/renminbi/rmb-tracker/document-centre#topic-tabs-menu (accessed 14.08.2016).
30. Krasavina L. N. Mirovoi opyt regulirovaniya internatsionalizatsii natsional’nykh valyut i ego znachenie dlya Rossii [World Experience of Managing Internationalization of National Currencies and Its Implications for Russia]. Den’gi i kredit, 2012, no. 9, pp. 10-17.
Registered in System SCIENCE INDEX
No comments