Research Of Contemporary International Monetary Competition

The rapid increase of Chinese economic development and international status has made the international influence of the RMB rising quickly.The Chinese government has attached great importance to the RMB in valuation,settlement and reserve shown great development trends in the regional and even international aspects.Seek scientific development road of the RMB,and actively participate in international currency competition have become the consensus of the government,enterprises and residents.The RMB has become participating in the International Monetary competition in order to get international economic and political interests.First this paper defined the monetary and currency competition,the International Monetary and International Monetary competition,and also explores the motivation and mode of the International Monetary competition.Second,it analyzed the historical evolution of the international monetary competitive landscape.The contemporary international monetary competitive pattern is a multi-currency dollar-dominated competitive landscape and also has some typical characteristics.The global financial crisis triggered by U.S.subprime mortgage crisis had limited impact on the competitive landscape,but the outcome of the European sovereign debt crisis will significantly affect the competitive landscape of contemporary international monetary.Third,it explored the influences of International Monetary competition on the international monetary system,international economic development and international financial order from a historical and comparative perspective to explore in depth.The authors believed that International Monetary competition had had a profound impact on the world.Fourth,on the basis of the competitive landscape trend of contemporary international currency it builded a general income-cost model and used this model to calculate the benefits and costs of the dollar,euro and yen.Fifth,this paper analyzed the need for RMB to participate in the competition of International Monetary.The author thought the RMB have some advantages and disadvantages to participate in the International Monetary competition,and also got some competitive strategy and specific measures for the RMB.The results show that the competitive landscape of contemporary international currency is still a multi-currency dollar-dominated competitive landscape including the euro and yen,but the currencies of the emerging developing countries are gradually added to the competition.Contemporary International Monetary competition both had a profound impact on the international monetary system,international economic development and international financial order.Since 2000,dollar,euro and yen all gained measurable and immeasurable gains and pay a certain cost.Every year the dollar obtained a high and stable measurable income,the euro and the yen got low returns but had greater volatilities.In addition,the dollar and the euro gained more rich immeasurable gains,paid limited costs,while the yen gained limited immeasurable income,paid higher cost.RMB should actively participate in the competition of international currency because the RMB will get lots of income such as International seigniorage,promote the reform of the international monetary system and also promote the long-term development of the Chinese economy.On the basis of a correct understanding of the RMB’s competitive advantages and disadvantages,the RMB should take the competition strategy of market leader in the Asia and market follower in the world.Also,we must strengthen the construction of the real economy,promote RMB cross-border trade settlement,strengthen monetary cooperation within the Asian region,accelerate the establishment of the RMB offshore financial market and improve the domestic financial market.