The Impact of RMB International on Pricing Power of China’s Bulk Stock ()
ABSTRACT
With the development of our economy, China has an increasingly demand for bulk
commodities and becomes a net
importer of many bulk commodities. However, China has little control over bulk
commodity pricing and has to passively accept the prices, which damages the
interest of our country badly. Adding
the RMB to the SDR is the new start of internationalization of RMB, and brings the new opportunity for controlling over
bulk commodity pricing. Based
on a large number of the existing literature, this paper first takes point of
view in the opportunities and challenges of the join of RMB to the SDR, then analyzes the mechanism of the bulk commodity
and the situation of lack of bulk commodity pricing. Finally, this
paper summarizes the internationalization strategy of RMB under the background
of commodity pricing power and the influence of RMB entry into SDR on the
pricing power of commodities in China.
Share and Cite:
Wang, T. (2018) The Impact of RMB International on Pricing Power of China’s Bulk Stock.
Journal of Financial Risk Management,
7, 139-147. doi:
10.4236/jfrm.2018.71009.