Factors Determining the Globalization of Renminbi

Ainur Sabyr, Behrooz Gharleghi, Benjamin Chan

Abstract


The Renminbi also known as RMB is the main currency of China. The main purpose of this study is to find the major factors that may cause RMB to be used in globe. Therefore this paper is analyzing the internalization of the RMB currency, the improvements of the reserve currency in China, as well as the capital account convertibility to determine whether RMB can be a global currency. To identify these variables, correlation analysis as well as regression analysis using SPSS are applied. The final result reveals that there is a strong relationship between reserve currency and capital account convertibility towards the globalization of the RMB.


Keywords


Capital account convertibility, reserve currency, RMB internalization.

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DOI: http://dx.doi.org/10.18533/ijbsr.v5i3.731

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