China's exchange rate policy has a strong and growing influence on other emerging Asian economies, according to a European Central Bank paper published on Friday.

Marcel Fratzscher and Arnaud Mehl, the paper's authors, use a global factor model of exchange rates to assess whether the international monetary system is already tripolar and centred around the dollar, the euro and the renminbi. The authors focus on China's dominance hypothesis and whether the renminbi is already the dominant currency