We document stylized facts about China's recent exchange rate policy for its currency, the renminbi (RMB). Our … empirical findings suggest that a "two-pillar policy" is in place, aiming to balance RMB index stability and exchange rate … flexibility. We then develop a tractable no-arbitrage model of the RMB under the two-pillar policy. Using derivatives data on the …

China has been provoked into speeding renminbi internationalization. But despite rapid growth in offshore financial … markets in RMB, the Chinese authorities are essentially trapped into maintaining exchange controls-reinforced by financial … price bubbles by driving nominal interest rates on RMB assets down further. Because a floating (appreciating) exchange rate …

This study examines the role of the Chinese renminbi (RMB) as an international anchor currency. After China abandoned … RMB's anchor weight in exchange rate policies remains low irrespective of China's global role. Overall, the weight of the … its tight US dollar (USD) peg in 2005, the RMB found greater popularity as a reserve currency. This change in the RMB …

The renminbi (RMB) has become something of a buzzword that is mentioned in all discussions, despite the fact that the … that within only a few years has become the biggest in the world after the United States. Second, China's soaring growth … determining a currency's equilibrium exchange rate - have not been accompanied by a rise in the RMB, so many people think that it …

This paper analyzes the progress of RMB internationalization by considering the effect of Shanghai Pilot Free Trade … descriptions about the influence of Shanghai FTZ, we use quantitative method to measure the effect of Shanghai FTZ on RMB … significant influence on the changing speed of RMB internationalization index yet, which is mainly because it has been only one …

China has been provoked into speeding renmnibi internationalization. But despite rapid growth in offshore financial … markets in RMB, the Chinese authorities are essentially trapped into maintaining exchange controls — reinforced by financial … price bubbles by driving nominal interest rates on RMB assets down further. Because a floating (appreciating) exchange rate …

Despite the increasing recognition that the renminbi (RMB) may eventually become a key global currency, several … important questions remain to be answered. This paper analyzes the benefits and costs of the RMB becoming an international … firms in the People's Republic of China. The costs include general costs, which complicate monetary policy and exchange rate …