Safe Haven Currency Attribute of RMB

Abstract

With the continuous progress of RMB internationalization, RMB has shown the attribute of safe haven currency. This paper discusses the exhibition of RMBs attribute of safe haven currency and the causes behind it in some special risk aversion periods recently by comparing RMB with other major currencies. The process of RMB internationalization has an important impact on the exhibition of RMBs attribute of safe haven currency. Although convertibility and high liquidity are necessary conditions for a safe haven currency, we also see that in some special circumstances, proper control is helpful for enhancing the safe haven currency attribute of RMB.