from International Institutions and Global Governance Program and Greenberg Center for Geoeconomic Studies

What Drives CNH Market Equilibrium?

November 01, 2011

Report

More on:

China

Monetary Policy

Capital Flows

Overview

The recent rapid growth of the offshore renminbi market presents a puzzle for analysts of China's development strategy. By allowing renminbi to flow offshore uncontrolled before loosening government controls over internal financial markets, Chinese officials are straying from the normal sequence of steps toward currency internationalization. Why might that be? In this Center for Geoeconomic Studies Working Paper, produced in association with CFR's International Institutions and Global Governance program, Peter Garber seeks to answer that question by investigating what drives offshore renminbi markets and how they are evolving.

More on:

China

Monetary Policy

Capital Flows

Explore More on CFR

Russia

If the President wants to use an arms build-up to advance arms control, he should take his cues from the Reagan record.

Yemen

The Gulf nation’s ground troops have cultivated alliances in Yemen with local armed groups, but its ability to shape the civil war’s outcome is limited.

U.S. Foreign Policy

U.S. competition with China continues to intensify, but rather than adopting a strategy of containment, the United States should respond by reinforcing its relationships with allies and leveraging China's desire for stability to discourage disruptive behavior.