The Renminbi Challenges the Dollar: A Conflict of Currency Statecrafts
Benjamin Jerry Cohen, Associate Fellow, International Economics Department, Chatham House
Chair: Alan Wheatley, Associate Fellow, International Economics Department, Chatham House
For nearly a century, the US dollar has reigned supreme for international money. Today, however, the greenback is under attack as never before by the Chinese yuan, also known as the renminbi (RMB), the “people’s currency.” In effect, two currency statecrafts have come into conflict: China, the rising power, is making every effort to erode the dollar’s dominance while Washington, the incumbent, must in turn decide what it is prepared to do, if anything, to counter the RMB’s rise. Who is winning?
At this event, Benjamin Jerry Cohen, a Louis G. Lancaster professor of international political economy at the University of California in Santa Barbara, will present what success there has been in a conflict of statecrafts and how it can be measured in two ways: in terms of policy measures effectively implemented on the supply side of the market or in terms of substantive impacts on behaviour on the demand side.