Bound Volume Number
Honors Capstone Project
Date of Submission
Prof. Tom Barkley
Prof. Daniel McDowell
Capstone Prize Winner
Won Capstone Funding
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.
Cheung, Brian, "The Rising Power of the Renminbi as a Trade Currency in the ASEAN Countries" (2015). Syracuse University Honors Program Capstone Projects. 917.
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