The internationalization of local currencies of emerging countries: the experience of the Mexican peso and the Chinese renminbi
Globalization introduced private and structural endogenous money (private monetary debts) as the main instrument of financial capital mobilization in the international financial system. A main consequence of this feature was the internalization of emerging economies currencies unfolding two successful experiences: the foreign exchange transactions related to the Mexican peso and the Chinese renminbi. The former currency internationalized as a result of the institutional changes unfolded in the Mexican economy and it’s insertion to the North American region (NAFTA); while the latter stemmed from a government strategy to influence the worldwide economy as a result of its accelerated economic growth and increased importance in the world economy. In this paper are discussed three main themes: the way in which emerging economies currencies internationalized; the insertion of these economies in the international market, and the divergent developments of successful currency internationalization.
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