A study on market network in the Pacific region and internationalization of the US dollar

DUAN Shide1

(1.School of Economics, South-Central University for Nationalities)

【Abstract】Through taking the favorable opportunity of the Pacific regional market that is away from the influence of Europe and the sterling area, the United States has laid a solid foundation for the internationalization of the dollar through the construction of an internationalized regional market network. The dollar was promoted to be an internationalized currency in the region among regional monetary bloc flexibly formed in the regional market. On this basis, a game started between the dollar and the British pound. Due to the difficulty of the pound in maintaining credit and the adjustment of the international financial system, the United States has successfully made the dollar an internationalized currency around the globe. To smoothly achieve the internationalization of the RMB we need to learn from the case of the dollar, and build solid trade and financial networks in neighboring countries and regions in order to promote the RMB as a regional international currency. Based on domestic economic development and financial innovation, we can consolidate the RMB credit basis and enhance China’s international competitiveness. Through promoting the reform of international financial system, we can optimize the institutional environment of RMB internationalization and eventually promote the internationalization of the RMB through sustained, steady and orderly steps.

【Keywords】 Pacific region; market network; monetary bloc; regionally internationalized currency; sterling bloc; Bretton Woods system; internationalization of dollar; international financial system; internationalization of RMB;

【DOI】

【Funds】 Youth Project of National Social Science Foundation of China (12CJL053)

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    Footnote

    [1]. ① The dollar zone mainly includes the United States, Canada, Mexico, Bolivia, Colombia, Costa Rica, the Dominican Republic, Ecuador, Haiti, Honduras, Nicaragua, Panama, El Salvador, Venezuela, the Philippines and China. [^Back]

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This Article

ISSN:1003-7411

CN: 22-1180/C

Vol 26, No. 02, Pages 71-81+128

March 2017

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Article Outline

Abstract

  • 1 Pacific regional trade market and the foundation for internationalization of the dollar
  • 2 Pacific regional financial market and expanded internationalization of dollar
  • 3 Global trade and financial markets and the achievement of the internationalization of the dollar
  • 4 Conclusions and implications
  • Footnote

    References