Renminbi import invoicing and dollar-related external vulnerability
Abstract
This article examines durable Renminbi import invoicing and external vulnerability linked to dollar dependence in developing economies. Using a dynamic staggered-adoption event-study design, it focuses on the Development Drag Index (DDI), an annual incidence measure of the macro-financial costs associated with dollar dependence. The evidence does not indicate broad or immediate de-dollarization. The DDI declines gradually after adoption, while no similar pattern appears for export-side Renminbi invoicing. The results suggest lower dollar-related external strain at the margin.
Fields of Study & Subjects
Global Financial Crisis and Policies
Banking stability
regulation
efficiency
Monetary Policy and Economic Impact
Publication details
- Journal / source
- Applied Economics Letters
- Publisher
- Informa UK Limited
- Pages
- 1–10
- Publication date
- 30 May 2026
- Language
- EN