The Evolution of Offshore Renminbi Trading: 2016 to 2019

34 Pages Posted: 25 Jun 2020

See all articles by Yin-Wong Cheung

Yin-Wong Cheung

University of California, Santa Cruz - Department of Economics

Louisa Grimm

Universität Osnabrück - Institute of Empirical Economic Research

Frank Westermann

Universität Osnabrück - Institute of Empirical Economic Research

Date Written: 2020

Abstract

We study the evolution of offshore renminbi trading between 2016 and 2019. The geographical pattern of changes in offshore renminbi trading during this period is different from the one between 2013 and 2016. The pattern of changes in the 2016-2019 period, in addition to the previously reported convergence to the geographical trading pattern of all currencies, is affected by (geopolitical) disputes and trade intensity. Further, China-specific RQFII investment quota arrangements and offshore market’s equity market capitalization and level of financial development play a role in shaping the offshore RMB trading pattern.

Keywords: global currency, FX turnover, geographical diffusion, renminbi internationalization, trade intensity

JEL Classification: C240, F310, F330, G150, G180

Suggested Citation

Cheung, Yin-Wong and Grimm, Louisa and Westermann, Frank, The Evolution of Offshore Renminbi Trading: 2016 to 2019 (2020). CESifo Working Paper No. 8385, Available at SSRN: https://ssrn.com/abstract=3635180 or http://dx.doi.org/10.2139/ssrn.3635180

Yin-Wong Cheung (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Engineering 2, Department of Economics
University of California
Santa Cruz, CA 95064
United States
831-459-5077 (Fax)

Louisa Grimm

Universität Osnabrück - Institute of Empirical Economic Research ( email )

Barbarastr. 12
Osnabrueck, 49076
Germany

Frank Westermann

Universität Osnabrück - Institute of Empirical Economic Research ( email )

Barbarastr. 12
Osnabrueck, 49076
Germany

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