Abstract:

After World War II, the financial system has been one of the most prominent and intensely competitive areas in constructing the global economic-political system. The Bretton Woods system, in force until the 1970s, was based on pegging all currencies to the US dollar. After the collapse of Bretton Woods system, the global financial system was designed under the IMF’s leadership and the USA’s domination. The 2008 global crisis that arose due to the functioning of the US financial system increased the disorder in the global financial system. After this process, China, which wants to overtake an active role in the global financial system, started the renminbi (RMB)’s internationalization process. The internationalization of the RMB includes not only economic motivations but also focuses on the realization of military and political goals. This study discusses China’s internationalization policy of RMB in the construction of the new global financial system. The fundamental results of the study can be summarized as follows: Although the arguments developed by China are significant in terms of the transformation of the global financial system, the obligation of structural transformations in the national economy, and the geopolitical risks it faces from a regional perspective restrict the aims it wants to realize. Despite these limitations, it is expected that China will have a voice in the global financial system, albeit narrowly, in the long run.