The Internationalization of Emerging Economy Currencies: An Alternative to Protectionism?

Abstract

The developments after the crisis of 2008-2009 highlighted the vulnerabilities of the International Monetary System. In this context, some countries considered reducing their dependence on the US dollar and increasing the role of their currency internationally. This paper examines whether the internationalization of emerging countries’ currencies has been an alternative to protectionism. To this end, we took into account the relevance of the currencies of emerging economies internationally and the internationalization of the renminbi. As far as the internationalization of the Chinese currency is concerned, we presented the political and economic motivations, the main paths, and the main evolutions.

Keywords

• currency internationalization
• protectionism
• emerging countries
• renminbi (rmb)
• china
• offshore market
• rqfii