We would like to thank Greg Chin for his comments and many discussions about this topic. Thank you also to Brian MacLean and the referees of Development and Change for helpful comments. We acknowledge funding from the Social Sciences and Humanities Research Council of Canada.
Renminbi Internationalization: A Journey to Where?
Article first published online: 4 NOV 2013
© 2013 International Institute of Social Studies
Development and Change
Special Issue: Globalization with Chinese Characteristics
Volume 44, Issue 6, pages 1363–1385, November 2013
How to Cite
Bowles, P. and Wang, B. (2013), Renminbi Internationalization: A Journey to Where?. Development and Change, 44: 1363–1385. doi: 10.1111/dech.12058
- Issue published online: 4 NOV 2013
- Article first published online: 4 NOV 2013
The renminbi is currently undergoing a process of internationalization which has raised fundamental questions about the evolution of the international monetary system and the dominance of the US dollar. In this article, we assess how far the renminbi has travelled down the internationalization road and analyse the possibilities for it challenging the role of the US dollar in the future. We utilize Cohen's () taxonomy to document the current dimensions of renminbi internationalization. Looking forward, we briefly summarize three common approaches to analysing currency internationalization, and propose a new approach. We argue that renminbi internationalization should be seen as a response to crises, first the Asian financial crisis and then the global financial crisis. As such, we argue that current internationalization has been driven by short-term problem solving rather than a coherent long-term strategy. The current path of RMB internationalization is best described as one of ‘currency normalization’ rather than ‘currency dominance’.