The Offshore Renminbi : The Rise of the Chinese Currency and Its Global Future.
Title:
The Offshore Renminbi : The Rise of the Chinese Currency and Its Global Future.
Author:
Minikin, Robert.
ISBN:
9781118339268
Personal Author:
Edition:
1st ed.
Physical Description:
1 online resource (272 pages)
Contents:
The Offshore Renminbi: The Rise of the Chinese Currency and Its Global Future -- Copyright -- Contents -- Foreword -- Preface -- List of Acronyms and Key Terms -- Chapter 1: The New Global Role for the Renminbi -- A Longstanding-but Failing-Path -- Allowing Renminbi Markets to Flourish -- Political Tailwinds for Internationalisation -- Challenges and Consolidation Risks -- Diversion Risks -- Instability Risks -- The Renminbi in a Multipolar World -- Chapter 2: Linking the Offshore and the Onshore Renminbi Markets -- International Transactions in a Domestic Currency -- Assessing International Linkages -- The Starting Point for Renminbi Internationalisation -- Investability: Opportunities and Challenges -- The Role of "Dim Sum" and Renminbi Intermediation -- Timing Convertibility -- Regulatory Divergences and the Role for Capital Controls -- PBoC and Exchange Rate Policy -- The Advantages of the Offshore Renminbi -- Chapter 3: The Birth and Evolution of the Offshore Renminbi Market in Hong Kong -- A Chronological Look at Key Policy Liberalisations -- 2004: The Trial Run of Personal Renminbi Business -- 2009: The Beginnings of Renminbi Cross-border Trade Settlement -- 2010: The Big Bang that Transformed the Offshore Market into the CNH Market -- What's Next: Policy Focus Shifting to the Three S's -- More on Renminbi Trade Settlement in the Post-Big Bang Era -- CNH Market Incentivises Renminbi Trade Settlement -- The Problematic Trade Settlement Conversion Quota System, Part I -- The Problematic Trade Settlement Conversion Quota System, Part II -- Rebuilding after the Storm -- From Renminbi Trade Settlement to Offshore Renminbi Deposits -- Too Much of a Good Thing Prior to Mid-2011 -- From Too Much CNH Deposits to Too Little -- Chapter 4: New Markets-New Jargon, New Opportunities -- The Chinese Yuan in FX Spot -- Importance of the CNH Premium.
A New Diversity of Forward Markets -- Opportunities in the CNH Markets -- Unpriced CNY Appreciation -- New Options in CNH Options -- Future Size of These Markets -- Tracking Returns in CNH Deposits -- The Dim Sum Bond Market Matures -- Chapter 5: Geographical Expansion of the Offshore Renminbi Universe -- From Hong Kong to Haiwai through Trade -- Renminbi in London and the Hub-and-Spokes Model -- Direct Renminbi Cooperation with Mainland China -- Shanghai's Aspiration and Infrastructure Overhaul -- Hong Kong Is Still in Pole Position -- From an Incubator to a Facilitator -- Mind the Closing Gap -- Stick to the Formula that Works -- Extend Reach to the PRD -- Be More International -- Chapter 6: Drivers for Internationalisation -- Public Policy: "Replacing" USD -- Economics: China's Role in the Global Economy -- For Investors: Appreciation-but, More Importantly, Diversification -- For Corporations: Fairer and More Transparent Pricing -- For Official Reserve Managers: A New Route to Stability? -- Chapter 7: The Rise of the Renminbi and Its Policy Implications -- The Renminbi's Rise: A Threat to the Hong Kong Dollar? -- The Renminbi's Rise: A Regional FX Anchor -- The Renminbi as an Asian FX Anchor -- Renminbi Internationalisation: A Model for the Rest of Asia? -- The Renminbi's Rise: The SDR and the IMF -- The Renminbi's Rise: The US Dollar in a Multipolar World -- Afterword: The Life Overseas with the Rising Renminbi -- Appendix: The CNH Timeline -- Bibliography -- About the Authors -- Index.
Abstract:
The rise of the renminbi and what it means for forex markets Chinese authorities have ambitious plans to "internationalize" the renminbi, transforming it from a tightly controlled domestic legal tender into a global currency for international trade, held by both private and public sector asset managers. The Offshore Renminbi examines this impending currency revolution, outlining why the emergence of China as a major economic power will likely soon be matched by a transformation of the renminbi's role in the global financial system. It explains how new markets for "offshore" renminbi are developing outside mainland China since the country is not yet ready to fully open up its economy to international capital flows, and the regulations that govern them. The potential growth for the renminbi market is vast, thanks to China's role in the global trading community. The early stages of the internationalization effort were small-scale, but momentum has greatly increased over the past 18 months, making this book more relevant than ever. These developments offer new opportunities (and challenges) for corporate treasurers and investors, as China's profound economic success and growing prominence in global trade may transform offshore renminbi into a new global reserve currency and a legitimate competitor to the U.S. dollar. Explores how the "internationalization" of the renminbi is likely to yield a new global currency to rival the U.S. dollar Examines "offshore" renminbi and the host of new financial markets they have created, from a spot FX market to Dim Sum bonds in Hong Kong Covers broad themes of interest to general readers and policymakers, as well as more detailed issues of practical and direct importance to corporate treasurers and investors The Chinese government has ambitious plans to make the renminbi a global currency. The Offshore Renminbi
explains the complexities of this strategy and the dramatic implications for the global FX markets.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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