On RMB's Internationalization Condition And Path Selection

With the promotion of China's economic strength and the everwidening open-up, as well as the fact that RMB is beginning to circulate in foreign countries, the issue of 'internationalization of RMB' is becoming a hot topic at present. Scholars from home and abroad have done quite a lot of researches on this. Although the internationalization of RMB is in face of heaps of barriers, it is an irreversible tendency, with the booming of China's economy and the lifting of RMB's international status. However, the internationalizationis a double-bladed sword, and it can benefit the issuing country while bringing the possibility of inducing disasters. Thus it is important that we seek the rules of internationalization of currencies, choose the right way in view of China's status quo and discreetly speed up the process of RMB's internationalization, so as to make the best of the situation.This article adopts a method from universe perspective to specific perspective in terms of the internationalization of RMB. Chapter One introduces the theory of internationalization of currencies, and points out that the internationalization would help the country gain Seigniorage, low cost in using other countries' international reserve, make it convenient for international trades and foreign investment. However, it may lead to relief of monetary policies, heavy liabilities and money demand as well as drastic fluctuation of foreign exchange. Chapter One also analyzes the condition of internationalization...