INTERNATIONAL RESERVE CURRENCIES AND THE FUTURE OF THE CHINESE YUAN
INTERNATIONAL RESERVE CURRENCIES AND THE FUTURE OF THE CHINESE YUAN
Author(s): Ayvaz Bartik, Kerem KarabulutSubject(s): Supranational / Global Economy, Financial Markets, ICT Information and Communications Technologies
Published by: Kafkas Üniversitesi Sağlık, Kültür ve Spor Daire Başkanlığı Dijital Baskı Merkezi
Keywords: Reserve currency; Yuan; Artificial Neural Networks;
Summary/Abstract: The purpose of this study is to explore has the possibility of the Chinese Yuan to becoming a dominant currency among countries with reserve currencies. The study examines GDP (world share), the share of total reserves in a country’s GDP, and the Consumer Price Index (CPI). Only countries that possess reserve currencies were analyzed. In this study, an Artificial Neural Network (ANN) prediction model was employed. According to the study results, it is estimated that Chinese Yuan meets the specified criteria and has the potential to become a strong currency in the future. Additionally, the study predicts that the United States will maintain its status as a strong reserve currency in the future but could lose its strength based on the specified criteria. Germany and the United Kingdom are expected to perform weakly according to the specified criteria.
Journal: Kafkas Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
- Issue Year: 14/2023
- Issue No: 28
- Page Range: 812-846
- Page Count: 35
- Language: English