Beyond borders: Decoding the influence of economic development, money confidence, financial market, and purchasing power on currency internationalization.

ABSTRACT: Due to dedollarization and deglobalization trends, countries are pursuing currency diversification to reduce reliance on the U.S. dollar and mitigate currency risks. The research on the drivers of currency internationalization still faces problems such as small sample sizes, fewer methods, and incomplete theoretical frameworks. This study aims to investigate the effects of economic development, money confidence, and the financial market on currency internationalization. It also explores whether purchasing power mediates the relationships between the first two exogenous variables and currency internationalization. The Partial least squares structural equation modeling (PLS-SEM) method is used to analyze secondary data from 9 of the 10 most used currencies (excluding the euro) from 2000 to 2

SUBMITTER: Cao Z 

PROVIDER: S-EPMC11813152 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature