Petro-RMB? The oil trade and the internationalization of the renminbi
Bibliographic Data
| ID | 3671857 |
|---|---|
| Authors | Maha Kamel, Maha Samy Kamel, Hongying Wang (0000-0002-8107-3492) |
| Year | 2019 |
| Volume | 95 |
| Issue | 5 |
| Pages | 1131-1148 |
| Publication date | 2019-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Affairs (JOURNAL) |
| Journal identifiers | ISSN: 0020-5850 • E-ISSN: 1468-2346 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/ia/iiz169 |
| OpenAlex | W2973007830 |
| Language | EN |
| Citations received | 7 |
In this article, we examine China's promotion of the renminbi (RMB) in international oil trade and explore its implications for the international currency system in the short and the long term. The article traces the rise of the RMB in international oil trade in recent years and provides an analysis of its impact on the internationalization of the Chinese currency. We argue that despite the increasing use of the yuan in oil trade in recent years, in the short term it is highly unlikely that a petro-RMB system will emerge to rival the petrodollar system. Unlike the petrodollar, which combines the qualities of a master currency, a top currency and a negotiated currency, China lacks the economic leadership and the political and geopolitical leverages to make the RMB a major petrocurrency. Although the emergence of the RMB-denominated Shanghai oil futures is an important development, the absence of highly developed financial markets and a strong legal system in China hinders its potential. In the long run, the RMB may take on a more prominent role in the international oil trade as China's weight as an oil importer rises. More importantly, the overuse of financial sanctions by the US government has begun to undermine the role of the dollar within and beyond the oil trade. In addition, the rise of alternative energy sources will diminish the centrality of oil in the world economy, thus reducing the significance of petrocurrencies-whether the dollar or the RMB-in shaping the international currency system
Business · China · Currency · Economics · Exchange rate · Foreign exchange risk · International economics · International trade · Internationalization · Liberian dollar · Monetary economics · Political science · Renminbi · Reserve currency · Finance · Global Financial Crisis and Policies · Market Dynamics and Volatility
China, the Global South, and the transnationalisation strategy of the renminbi
Pandemic Shocks and Household Spending
Status quo crisis again? RMB challenges and dollar hegemony
From geopolitics to geoeconomics and back. Why age of geoeconomics is over
Financial sanctions and political risk in the international currency system
Developmental or Liberal? How Japan and South Korea Diffuse Hybrid Financial Market Norms
China, International Finance, and the Global Economic Order
| Unique citing works | 7 |
|---|---|
| Citations per year | 1,17 |
| Citation span | 2020 - 2026 (7) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 5 |