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The Renminbi and Exchange Rate Regimes in East Asia

dc.contributor.authorMasahiro Kawai
dc.contributor.authorVictor Pontines
dc.date.accessioned2015-04-10T10:17:33Z
dc.date.available2015-04-10T10:17:33Z
dc.date.issued2014-05-15
dc.identifier.urihttp://hdl.handle.net/11540/3976
dc.description.abstractWith the rise of the People’s Republic of China (PRC) as the world’s largest trading nation (measured by trade value) and second largest economic power (measured by GDP), its economic influence over the neighboring emerging economies in East Asia has also risen. The PRC introduced some exchange rate flexibility in July 2005, and in the wake of the global financial crisis has been pursuing a policy to internationalize its currency, the renminbi (RMB). Clearly the exchange rate policy of the PRC has significant implications for exchange rate regimes in emerging East Asia. This paper examines the behavior of the RMB exchange rate and the impact of RMB movements on those of other currencies in emerging East Asia during the period 2000–2014. We apply the Frankel–Wei regression model to identify changes in the RMB exchange rate regime over time and a modified version of the model, developed by the authors in their earlier paper, to estimate the RMB weight in an emerging East Asian economy’s currency basket. We find that the US dollar continues to be the dominant anchor currency in the region, while the RMB has taken on increasing importance in the currency baskets of many East Asian economies in recent years. The paper also explores how monetary and currency cooperation—led by the PRC and Japan— can promote intra-East Asian exchange rate stability under the pressure of rising financial market openness in the PRC.
dc.languageEnglish
dc.publisherAsian Development Bank
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.titleThe Renminbi and Exchange Rate Regimes in East Asia
dc.typeWorking Papers
dc.subject.expertDevelopment Planning
dc.subject.expertDevelopment Research
dc.subject.expertTechnology Development
dc.subject.expertAid And Development
dc.subject.expertAsian Development Bank
dc.subject.expertComprehensive Development Framework
dc.subject.expertDevelopment Cooperation
dc.subject.expertDevelopment Management
dc.subject.expertDevelopment Planning
dc.subject.expertDevelopment Strategies
dc.subject.adbDevelopment strategy
dc.subject.adbDevelopment models
dc.subject.adbEconomic development
dc.subject.adbNew technology
dc.subject.adbRural planning
dc.subject.adbAid coordination
dc.subject.adbIndustrial projects
dc.subject.adbInfrastructure projects
dc.subject.adbNatural resources policy
dc.subject.adbEducational development
dc.subject.adbAbsorptive capacity
dc.subject.naturalRural planning
dc.subject.naturalRegional development bank
dc.subject.naturalProject finance
dc.subject.naturalStrategic planning
dc.subject.naturalInfrastructure projects
dc.subject.naturalGovernment programs
dc.subject.naturalPublic finance
dc.subject.naturalPublic enterprises
dc.subject.naturalDevelopment
dc.subject.naturalEconomics
dc.subject.naturalDevelopment In East Asia
dc.subject.naturalDevelopment Planning
dc.subject.naturalDevelopment Research
dc.subject.naturalTechnology Development
dc.subject.naturalAid And Development
dc.subject.naturalAsian Development Bank
dc.subject.naturalComprehensive Development Framework
dc.subject.naturalDevelopment Cooperation
dc.subject.naturalDevelopment Management
dc.subject.naturalDevelopment Planning
dc.subject.naturalDevelopment Strategies Development strategy
dc.subject.naturalDevelopment models
dc.subject.naturalEconomic development
dc.subject.naturalNew technology
dc.subject.naturalRural planning
dc.subject.naturalAid coordination
dc.subject.naturalIndustrial projects
dc.subject.naturalInfrastructure projects
dc.subject.naturalNatural resources policy
dc.subject.naturalEducational development
dc.subject.naturalAbsorptive capacity
dc.subject.naturalEconomic development projects
dc.subject.naturalEconomic forecasting
dc.subject.naturalEconomic development projects
dc.subject.naturalMunicipal government
dc.subject.naturalTechnology transfer
dc.subject.naturalExchanges of patents and technical information
dc.subject.naturalTechnical education
dc.subject.naturalTechnology
dc.subject.naturalCommunication in rural development
dc.subject.naturalCommunication in community development
dc.subject.naturalEconomic development projects
dc.subject.naturalDevelopment banks
dc.subject.naturalEconomic forecasting
dc.subject.naturalEnvironmental auditing
dc.subject.naturalCumulative effects assessment
dc.subject.naturalHuman rights and globalization
dc.subject.naturalTransfer Technocracy
dc.subject.naturalAbsorptive capacity
dc.title.seriesADBI Working Paper Series
dc.title.volume484
dc.contributor.imprintAsian Development Bank
oar.themeDevelopment
oar.themeEconomics
oar.adminregionEast Asia Region
oar.countryPeople's Republic of China
oar.countryHong Kong
oar.countryChina
oar.countryRepublic of Korea
oar.countryMongolia
oar.countryTaipei,China
oar.identifierOAR-004003
oar.authorKawai, Masahiro
oar.authorPontines, Victor
oar.importtrue
oar.googlescholar.linkpresenttrue


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  • ADBI Working Papers
    The Asian Development Bank Institute (ADBI) Working Paper series is a continuation of the formerly named Discussion Paper series which began in January 2003. The numbering of the papers continued without interruption or change. ADBI was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in Asia and the Pacific.

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