Contemporary Chinese Political Economy and Strategic Relations: An International Journal (Dec 2018)
The Asian Infrastructure Investment Bank, the New Development Bank and the Internationalisation of the Renminbi (RMB) – The New International Financial Institutions as Part of the Chinese Strategy to Build Up an International Reserve Currency
Abstract
China’s economic rise is being followed by an increasingly assertive foreign policy, which is marked by criticism of the current international financial system and attempts to change it. Beijing’s leading role in the launch of two international financial institutions (IFI) – the Asian Infrastructure Investment Bank and the New Development Bank – is a good example of these attempts. Chinese leaders are wary that international financial leadership necessarily requires the internationalisation of its currency, and their leading position within the new IFIs provides a good opportunity to internationalise the renminbi.
