RMB Internationalization In The New Situation

Subprime crisis made the international monetary system based on the US dollar andflexible exchange rate be questioned by the world. People thought the internationalmonetary system centered on US dollar is the root cause. As the mother land of this crisis,America not only doesn’t take the responsibility of smoothing exchange rate, but printshuge amount of US dollar to shift his own burden of crisis onto other countries. The crisishappened in Europe is also a challenge to the Euro zone, his allied country went bankruptbecause of the heavy debt. Now the status of Euro is in descend.On the contrary, the financial system of China was relatively steady and safe, andChina helps other countries of the world to go out of the financial crisis at an early date.The reputation of RMB is going up and up. To catch the opportunity and promote RMBinternationalization is a pressing task.This paper studies RMB internationalization based on the new situation of theinternational financial system, and analyzes it in both theory and empirical research. Intheory, we do a SWOT analysis; in empirical research, we get the RMBinternationalization level, plus the profit and the risk. Eventually, compared with theinternationalization history of the US dollar, Euro and Yen, we get seven conclusions.1.Enhance our national power;2.Financial deepening;3.Capital account liberalization goesstep by step;4.Supervisory control on the credit capital of banks;5. Reinforce thecooperation between areas;6.Government’s promotion;7. RMB internationalization needspatience.