Analyzing For Advantages And Disadvantages Of RMB Internationalization

Along with the development of RMB internationalization, the studies about it arebecoming a hotspot of the academia. A lot of works have been done about the meaning,conditions of RMB internationalization, and some big progresses have been made. Theadvantages and disadvantages of RMB internationalization are very important for the studiesof the economists. Some analyses have been done in different views, but an identity ofconclusion has been reached by some economists. A further analysis of the advantages anddisadvantages of RMB are done by me, which is based on the studies that have been done bysome economists, and some advises to push RMB internationalization are given as a purposeof this paper.This paper is started by analyses to some basic conceptions of RMB internationalization,then the meaning, conditions of RMB internationalization are clear. The theory of assetsdemand is used to analyze the conditions of RMB internationalization. So, RMBinternationalization is thought as a result from the selection among internationalized moneysby nonresidents. At the same time, some actual states and recent advances will be written.Then the advantages and disadvantages of RMB internationalization are analyzed. Somequantitative analyses will be used on the advantages and some qualitative analyses will beused on the disadvantages. The analyses of seignorage of RMB from Hong Kong and thediminishing of exchange rate risks are the more important parts of advantages, and theanalyses of disadvantageous influences of external economy are also the same fordisadvantages.As the end of this paper, some advices are given based on the analyses above.