• Dr. Rakesh Kumar Bhati
• Dr. Sachin Borgave

A currency can be considered to be ‘international’ if it is used offshore for trade and investment. There are strong natural drivers behind the international use of the renminbi (RMB). in January 2018, Germany’s central bank, the Bundesbank decided to include China’s currency in its foreign exchange reserves.Continued growth may well be slow, some observers believe, because only a small portion of global payments are conducted in RMB, foreign ownership of Chinese stocks and bonds is low, very little trade is invoiced in RMB and only 16 percent of Chinese trade itself is settled in RMB. This paper analyses the macroeconomic variables that determines the currencies’ shares in the international bond market, for the five currencies of the SDR Basket: RMB, EUR, GBP, JPY, and USD. It was noticed that the share of international bonds is influenced by the size of the economy, by inflation rates and by the yield spread. Moreover, they suggest that the determinants do not present a homogenous pattern. The estimated coefficients differ not only between currencies but also between regions under the same currency. The study indicates that the expansion of the Chinese economy is likely to support the internationalization of the currency across all regions and that the USD has a distinctive role that has not yet been achieved by any other currency.

International Currencies, International Bonds, Renminbi, SDR

"A CONCEPTUAL FRAMEWORK OF DRIVERS BEHIND THE INTERNATIONAL USE OF THE CHINESE CURRENCY RENMINBI ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 5, page no.533-537, May-2019, Available :http://www.jetir.org/papers/JETIR1905O84.pdf

"A CONCEPTUAL FRAMEWORK OF DRIVERS BEHIND THE INTERNATIONAL USE OF THE CHINESE CURRENCY RENMINBI ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 5, page no. pp533-537, May-2019, Available at : http://www.jetir.org/papers/JETIR1905O84.pdf