Chinese Yuan Per Sdr During Covid-19

Authors

  • Debesh Bhowmik Research Professor, Lincoln University College, Malaysia

DOI:

https://doi.org/10.46977/apjmt.2021v02i02.001

Keywords:

Yuan Per SDR, Internationalization of Yuan, Multiple Regression, CUSUM of Squares, Correlation Matrix, Seasonal Variation

Abstract

In this paper, author seeks to explore the dominant determinants that would influence the behaviour of Yuan per SDR especially during the period of Covid-19 from 2020m1 to 2021m7 since Yuan enters into the SDR basket from October 2016.Author selected three dimensions such as dominant macro variables, exchange rates and important capital market indicators. The paper found that Yuan/US$ had great influence on Yuan per SDR rate, export, import and foreign exchange reserves which affected Yuan per SDR rate and market capitalization, number of listed companies, Shanghai Composite Index and interbank lending trading volume have significant impact on the Yuan per SDR during the specified period. The paper focus on the policies of capital account convertibility, exchange rate stability, more participation in interbank lending, balance the onshore and offshore RMB market, and strengthening capital market of China.

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References

Amstad, Marlene., & He, Zhiguo. (2019, February). Chinese Bond Market and Interbank Market. NBER Working Paper No-25549(pp 105-148). http://www.nber.org/papers/w25549

Balasubramaniam, V., Patnaik, I., & Shah, A. (2011). Who cares about the Chinese Yuan?. National Institute of Public Finance and Policy.

Bank of China (2021). The Renminbi’s inclusion in the SDR adds impetus to its internationalisation (5th August). https://www.centralbanking.com/central-banks/currency/7863626/the-renminbis-inclusion-in-the-sdr-adds-impetus-to-its-internationalisation

Bank of International Settlements (2021). BIS. https://www.bis.org/

Bhowmik, D. (2016a). Indo-China Trade, Yuan in SDR basket and the world economy. Political Economy Journal of India,25(1& 2),1-17. http://debeshbhowmik.weebly.com/my-publication.html

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Chen, T. (2021). China’s Sovereign Bonds: The Alternate Safe Haven (28th June). Frenklin Templeton. https://www.franklintempleton.com/investor/article?contentPath=html/ftthinks/common/fixed-income/chinas-sovereign-bonds-the-alternate-safe-haven.html

Published

2021-10-01

How to Cite

Debesh Bhowmik. (2021). Chinese Yuan Per Sdr During Covid-19. Asia-Pacific Journal of Management and Technology (AJMT), 2(2), 1-10. https://doi.org/10.46977/apjmt.2021v02i02.001

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