Analysis of the Use of the Chinese Renminbi as an International Currency

The aim of the paper is to assess the role of renminbi in global currency relations by analysing the use of the Chinese currency in the main functions of international money in the official sector (reserves currency, intervention currency and anchor currency) and in the private sector (investment and financing currency, quotation currency and vehicle currency) as well as to assess whether the Chinese currency has a chance to become a global or only regional currency. The factors that determine the importance of the Chinese currency, in particular the potential of the Chinese economy and the active efforts of the authorities to promote the renminbi, will also be considered. Author attempts to answer the question whether a stronger position of the renminbi as an international currency will serve to increase the stability of the international monetary system. The analysis covers the period from the mid-1990s to 2017.