Study On The Internationalization Of Chinese RMB

With the constantly improvement of China's international political status and sustained rapid economic growth and stable RMB exchange rate plus the many years of surplus for balance of payments and high foreign exchange reserves, RMB has gone abroad, and its internationalization has also been the focus. The internationalization of RMB is the inevitable result of China's long-term economic growth and increased political strength, which consistent with the interests of our national development strategy. The most direct monetary internationalization benefit is the Seigniorage. Apart from the Seigniorage benefit, the international currency also could bring many other indirect benefits. The internationalization is a double-bladed sword, and it can benefit the issuing country while bringing the possibility of inducing disasters. There are five parts excluding the introduction and conclusion. In the first part, the writer introduces logical concepts of the internationalization of currency. The second part introduces the current situation, characteristics of RMB, and analyzes the potential income and risk of the internationalization of RMB. In the third part, the writer introduces the internationalization process of US dollars, EURO and Japanese Yen and their successful experiences and indicates that China should draw lessons from the internationalization of the world's three major currencies. In the forth part, the writer points out that the internationalization of RMB should follow a way suited to China's national conditions and is a long-term, piecemeal and gradual process as China is still a developing country. At the end of this paper, some advices are given based on the analyses above.