Study Of The Internationalization Of The Rmb In The Context Of East Asian Monetary Cooperation

With China's economy growing rapidly, there are more and more cross-border activities such as international trade and travelling, foreign directive investment (FDI) and overseas investment; and as that economic scale is enlarging, Renminbi (RMB) is recognized as a dominated currency and accepted by the regional market.RMB gained good reputation in the Asian financial crisis in 1997, as Chinese government took appropriate measures to maintain its currency strong. Eastern Asian countries have been searching for regional monetary cooperation since the crisis. The Chiang Mai Initiative (CMI) is the representative achievement which the Association of Southeastern Asian Nations (ASEAN) and other three countries (China, Japan, Korea) established a platform of bilateral and multilateral currency swap arrangements among the member countries. The ASEAN+3 also established multi-layer policy dialogue mechanism, and set up the Asian Bond Found, etc. China is one of the active anticipators and plays a critical role in such cooperation.Under the current global financial turmoil, reform on international currency system is necessary. China makes her outstanding from the suffering countries all over the world by keeping relatively rapid growing as before and RMB extends its influence in international market further. That's the unprecedented chance for the internationalization of RMB.In this paper, the author will discuss the possibility and feasibility of the internationalization of RMB with the successful cooperation with Eastern Asian counties by qualitative and quantitative analyzing and comparative study. Firstly, the author will review the developement of major currencies--British Pound, US Dollar, Euro and Japanese Jen and evaluate and study the four models; secondly, the author will review the history of the RMB's regionalization; and finally develop a set of reasonable strategies for RMB's internationalization.