The internationalization of the Chinese currency: Hegemonic dispute or defensive strategy?

Abstract

The project of internationalization of the Chinese currency was designed as a response to the 2008 crisis. The purpose of the Chinese government was to promote greater use of its currency by foreign countries and companies. This process is still ongoing, despite some setbacks in late 2017. Our hypothesis is that this project has a defensive character. Its intention is to reduce China’s and its partners’ reliance on the use of the dollar for their international transactions, increasing their ability to respond to the international monetary system’s turbulences. This is in opposition to the vision that the Chinese aim, in the long run, is to replace the dollar as the key currency of the international monetary system.