Abstract
With the growing importance of the Chinese economy, it is widely believed that China’s currency is having increasing impact on Asian currencies. Foreign exchange traders and analysts frequently attribute movements of Asian currencies to those of the renminbi.1 A China dominance hypothesis has surfaced in academic research papers, suggesting that the sheer size of the Chinese economy will ensure that the renminbi will gradually play a central role in the region, and may become an anchor currency in Asia (Colavecchio and Funke, 2007; Greenaway et al., 2006). The knock-on effects that the renminbi can have on regional currencies have also been noted by policymakers worldwide. Yam (2007), for example, remarks that a large (stepwise) appreciation of the renminbi against the US dollar would trigger substantial movements in the exchange rates of developing economies, particularly those in Asia.
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© 2010 Chang Shu
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Shu, C. (2010). Impact of the Renminbi Exchange Rate on Asian Currencies. In: Peng, W., Shu, C. (eds) Currency Internationalization: Global Experiences and Implications for the Renminbi. Palgrave Macmillan, London. https://doi.org/10.1057/9780230245785_10
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DOI: https://doi.org/10.1057/9780230245785_10
Publisher Name: Palgrave Macmillan, London
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