Rmb International Ization

As China's national comprehensive strength growing stronger, the Renminbi's international status increasing gradually. RMB become an international currency, playing the role of invoicing currency, vehicle currency and saving currency is China's inevitable choice, is in line with the strategic interests of our country's needs. But now the RMB's internationalization process is still facing a number of constraints, these constraints affect RMB's three functions as a international currency in different degrees. To promote the process of RMB internationalization, it is important for us to get a clear understanding of these constraints.This paper descripe the status of RMB's internationalization, analysis RMB's function as a international currency from the perspective of both qualitative and quantitative, get the conclusion that the internationalization of RMB is still at a low level.Then examined the JPY's status as a international currency, empirically analysis the constraints encountered in JPY's internationalization. Japan's special trade structure and exchange rate fluctuations both constraint the function of JPY as a international currency. Japanese companies' financing structure and uncompetitiveness in promoting JPY to be a settlement currency are supposed to be major constraints that lead to the stagnation of JPY's internationalization. Summed up the experience that can benefit RMB's internationalization. Then discuss the constrains that RMB may face in its internationalization from the perspective of monetary functions, we think that China's trade structure, China's financial market imperfections and the instability of the macroeconomic are all factors that impact RMB's role as a international currency. Chinese companies' weak competitiveness, special finance structure and the existing international currency's prevention are supposed to be the major obstacles in RMB's internationalization. We should firstly promote RMB to be the invoicing currency and vehicle currency in Asia, promote RMB to be the international currency in the Asia regional. Then prove that RMB's internationalization in Asia is not only necessary but also possible; believe that increasing the international competitiveness of China's enterprises is the most important measure to promote RMB's internationalization.