Study On RMB Internationalization In Terms Of Development Path And Safeguard Measures

Currency is both the symbol of national sovereignty and the reflection of nationalcomprehensive strength, such as political, economic, military, scientific state. Internationalization ofa country's currency is not only the concentrated expression of the level of economic development,financial competitiveness, opening-up to the outside world and influence in the world political andeconomic situation, but also an important symbol of a country's emerging.After more than30years of reform and opening up, with the great ascension of China'scomprehensive national power and international influence, RMB Internationalization has become aninevitable trend of China's economic development in the21st century. If the Asian financial crisishas expanded RMB regional influence and laid the foundation of RMB internationalization, outbreakand spread of America financial crisis is speeding up the process of RMB internationalizationdevelopment. China implemented RMB cross-border trade settlement in2009, which marked thebeginning of RMB internationalization from market independent demand stage to official policypromoting stage.RMB internationalization is a pioneering, strategic and systematic cause. The currenciesinternationalization in developing countries is unprecedented, so no template and examples availablemay be consulted. Based on theory of currencies internationalization, for reference to theinternational development path of the Dollar,Yen and Mark, with as the basis of the practice ofRMB internationalization, this paper explored the development path of RMB internationalization,and put forward the security measures of RMB internationalization development. The main contentof this article are as follows:1. This paper researched the main theory of western currency internationalization into theinternational monetary function theory, the international monetary competition theory, settlementcurrency option theory and optimum currency area theory, which provided theoretical basis for thestudy of RMB internationalization development path and ideas.2. Through the use of methods of historical and comparative analysis, the paper researched theinternational development path and characteristics of the Dollar, the Yen and the Mark, summarizedthe general law of currency internationalization, for choosing of RMB internationalizationdevelopment path with Chinese characteristics to provide historical reference and enlightenment.3. The paper explored some factors affecting RMB internationalization, built the theoreticalmodel of analysis RMB internationalization degree, based on the practice of RMBinternationalization, and used the empirical study and SWOT method to analyze the present situation,internal and external environment Of RMB internationalization development. In the background ofAmerican financial crisis, European debt crisis and China speeding up the transformation mode ofeconomic development, the paper concluded that promoting the development of RMBinternationalization, revenue was higher than cost, opportunity was greater than challenge, and advantage was more than disadvantages.4. Combined with the comparative study on the development path of the Dollar, the Yen andMark internationalization, this paper put forward that RMB internationalization should choose adevelopment path with Chinese characteristics of currency internationalization. This paper drawn aconclusion that RMB internationalization development was the currency＂function development,geographic expansion and deregulation＂three dimensions＂three-step＂path coupling. Both fromthe financial circulation and economic cycle,respectively,the paper analyzed the development pathof funds circulation of RMB internationalization, ended with the empirical data for support, anddrawn operable roadmap to promote the development of RMB internationalization in the field ofcross-border trade and foreign direct investment.5. The paper used multiple methods, such as empirical analysis, specification analysis, andgame analysis, under the route framework of the probability of RMB internationalizationdevelopment, combined the stage features of RMB internationalization, put forward safeguardmeasures of RMB internationalization development: firstly, to tamp RMB internationalization base;secondly, to build the circulation mechanism of RMB cross-border trade; thirdly, to develop themarket platform of RMB internationalization; fourthly, to guard against the risk of RMBinternationalization process; finally, to create a good external environment for RMBinternationalization.