Graduate School of Economics and Management, Tohoku University

Professor, Graduate School of Economics and Management, Tohoku University

The paper dynamically analyzes the recent RMB internationalization development. Unlike previous studies, we study the level of currency internationalization using explanatory factor analysis and rolling correlation calculation and report evidence that the Chinese RMB is still not a completely internationalized currency, but overall is internationalizing with a positive trend. Moreover, based on a Bayesian-based causal impact analysis, we study the effect of the COVID-19 pandemic on the process of RMB internationalization.