Financial Globalization And Internationalization Of The Rmb Countermeasures

Financial globalization which has become a main trend of the economic globalization will lead the world economy and international finance to an unprecedented extend and deepness. With such a background, RMB internationalization shows its face slowly and begins to become a remarkable issue which attracts all the eyes on it. The three main currencies of the world now, i.e. US dollar, Euro and Yen, have different ways to the internationalization. Although those ways have some reference effect to RMB internationalization, some developing countries like Poland and Chile's "progressive reform"experiences are of more value to China. The first step to RMB internationalization has to be started from the exchange rate innovation and there is only one best choice, that is, a managerial floating exchange rate system which means a managerial floating exchange rate system related to "a basket of currencies". But exchange rate innovation is not the ultimate objective, yet just the first procedure. China's finance really coming into globalization must reach the goal finally that RMB should be one of the basic currencies of the East Asian countries. At the same time, we must do some preparation now to take on and face with all kinds of risks which are brought by the financial globalization. First of all, we should consummate the legal system and set up an effective financial control; secondly, we should continue to keep more foreign exchange reserve which will make guarantee to the exchange rate innovation; thirdly, revaluing RMB ought to insist on valuing from our own as a centre, not echoing what others say; last but not the least, we should consider about the countermeasures in all respects in case of regional or global financial crisis break out all over again. RMB globalization with China's finance coming into globalization is not only an issue of benefiting ourselves. We should also care about RMB's interaction, friction, interest conformity and interest conflict with US dollar, Euro and Yen, which need more drive by interest and deeper political wisdom to deeply resolve the non-financial, even non-economic difficulties such as the abnormal relationship between Japan and other countries which were invaded by Japan in the past, America and western countries'worry and scare to China's growing up. In that case, we have the probability to achieve our grand objective in the end.