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Currency comovements in Asia‐Pacific: The regional role of the renminbi
Author(s) -
Marconi Daniela
Publication year - 2018
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.12266
Subject(s) - renminbi , economics , china , currency , liberian dollar , us dollar , exchange rate , international economics , internationalization , east asia , monetary economics , international trade , finance , geography , archaeology
The internationalization of China's currency, the renminbi (RMB), bolsters the growing economic and political influence of China in the Asia‐Pacific region. This paper assesses the evolution of RMB exchange rate comovements against the US dollar (USD) within the region. While the RMB's influence is growing, it is also found to be asymmetric and varying over time depending on the global movement of the USD. The trend is strong when the USD depreciates but fades when the USD appreciates.