Bound Volume Number


Degree Type

Honors Capstone Project

Date of Submission

Spring 5-5-2015

Capstone Advisor

Prof. Tom Barkley

Honors Reader

Prof. Daniel McDowell

Capstone Major


Capstone College


Audio/Visual Component


Capstone Prize Winner


Won Capstone Funding


Honors Categories

Social Sciences

Subject Categories

Finance and Financial Management


This paper looks at the renminbi as a trade settlement currency in the countries that make up the Association of Southeast Asian Nations. The paper first looks at the trade picture in ASEAN, and how the old trade dynamics with the United States were broken down during the 1997 Asian financial crisis. In the ensuing power vacuum, China started to replace the United States as a trade partner, growing today to become even larger of a trade partner than the U.S ever was. The following section explores the role of the growth of the renminbi in use as a trade settlement currency in ASEAN, using the U.S. dollar as a foil.

By looking at Chinese policy in liberalizing the renminbi, this paper also draws conclusions about whether or not there’s room for the renminbi to grow in ASEAN in use as a trade settlement currency. In concluding, this paper will look at the broader picture and whether or not the Chinese renminbi has the potential to become a currency as widely used and held as major currencies like the Japanese yen, British pound sterling, or Euro.

Creative Commons License

Creative Commons Attribution 3.0 License
This work is licensed under a Creative Commons Attribution 3.0 License.



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