RMB Internationalization: O+L5022nshore/Offshore Links
| Autor: | Joong S Kang, Samar Maziad |
|---|---|
| Rok vydání: | 2012 |
| Předmět: |
Financial sector development
Exchange rate Spillover effect Renminbi General Earth and Planetary Sciences Bond market Spot market Forward market Business International economics Emerging markets China Foreign exchange Currency internationalization Currency spillovers Offshore centers exchange rates exchange rate forward market bond international currency International Monetary Arrangements and Institutions General Environmental Science |
| Zdroj: | IMF Working Papers. 12:1 |
| ISSN: | 1018-5941 |
| DOI: | 10.5089/9781475503838.001 |
| Popis: | Among emerging market currencies, the RMB holds the most potential to become widely used internationally, due to China‘s large economic size, diversified trade structure and network, macroeconomic stability, and high growth rates - both current and expected. Yet, foreign access to RMB-denominated assets that could act as global stores of value remains limited due to extensive restrictions on capitals flows. At the same time, the rapid expansion of RMB trade settlement and issuance of RMB-denominated bonds by the Chinese government and corporates in Hong Kong, SAR have created some feedback channels across onshore (CNY) and offshore (CNH) RMB markets. We employed a bivariate GARCH model to understand the inter-linkages between onshore and offshore markets and found that, while developments in the onshore spot market exert an influence on the offshore spot market, offshore forward rates have a predictive impact on onshore forward rates. We also find evidence of volatility spillovers between two markets. Overtime, those spillover channels would be expected to grow as the offshore market further develops. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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