The rise of a new anchor currency in RCEP? A tale of three currencies

We propose a flow-based criterion (intensity of use) and stock-based (stability value) for choosing an anchor currency. This conceptual framework is applied to analyzing the RCEP region. According estimated TVP-VAR model, influence US dollar in region was weakened during global financial crisis COVID pandemic, creating opportunity both Chinese Yuan Japanese Yen compete In terms intensity criterion, China accounts largest share regional share, but seems have upper hand stability criterion. The sophisticated cooperative-competitive relationship between Japan may prolong birth new Before then, still holds role trade subject excessive volatility.