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The Globalization of the Renminbi: Feeling the Stones on the River Bed

By Hong Zhang,  Gourang Shah,  Anne Yang
Published 23 Jun 2014
Reference 6038
Topic Economics & Finance
Region Asia
Length 15 page(s)
Inspection copy
Teaching note
6.00
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Summary

China represents a significant share of global foreign direct investment but its currency comprises a mere 1.5% of all global foreign exchange transactions. This case describes the measures introduced by the Chinese government to promote the use of the renminbi (RMB) in cross-border trade, financing and other internationalization initiatives, as well as the associated challenges.

Teaching objectives

The case introduces and discusses: 1. Countries and currencies 2. China’s economic development and emergence on the global stage 3. Process and policies for the renminbi's internationalization 4. Key stakeholders and implications 5. Potential problems and challenges 6. 3 case scenarios involving the RMB

Keywords
  • Renminbi
  • Currency
  • Treasury Globalization
  • Internationalization
  • Globalization
  • Monetary Policies
  • Economic Development
  • Cross-border Finance
  • Q41314
  • Corporate Governance
  • Corporate Governance for Family Firms
About the authors
Zhang

Hong Zhang

Gourang Shah

Anne  Yang


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