Research On The Path Of RMB Internationalization

In recent years, with the growing strength of economic and rapid development offoreign trade, RMB circulation scale in neighboring countries and the region have beenincreasing. Since the exchange rate reform in2005started the second round appreciationtrend of the RMB, the voice that RMB will be an international currency became more andmore loudly.Now our country’s GDP and total volume of import and export is the second largest inthe world, just second only to USA’s. But RMB international status is low, and can’t matchwith the economy scale. After Subprime Crisis, the three international currencies--dollar,euro, yen appear different confidence crisis, and international monetary system reforming isbecoming urgently. Therefore, the RMB internationalization is not only the need of China’sdeepening reform and opening up, but also the inevitable choice under the current worldeconomy background. At the same time, the RMB internationalization has huge profit andits long-term profit is greater than short-term. So it’s an important strategy to promote ourcountry’s economy development, improve the international competitiveness and enhanceinternational discourse right.Due to the RMB capital account controls, the free convertibility of the RMB isrestricted, RMB cross-border settlement and offshore finance are the most important waysto promote the internationalization of RMB. The RMB internationalization is the keydevelopment strategy which is applied in the international monetary and financial field bythe Chinese government to strive for higher international status. The formation anddevelopment of CNH（the CNY Offshore Market in Hong Kong）is an important part of thestrategy of the RMB internationalization. CNH is gradually formed under the Chinesegovernment policy and it belongs to the local currency offshore financial markets. Policypromotion and offshore local currency are the remarkable features of the CNY OffshoreMarket in Hong Kong.In accordance with the principle of gradual internationalization of the RMB, RMBinternationalization path should first be developed from the periphery of the RMB to theregionalization of RMB, which is consistent with the objective laws of the development andthe actual situation in China. In view of the successful experience of European monetaryintegration and the failure experience of yen internationalization——big countriesconsensus on cooperation in the region is conducive to stable regional monetary system,The prerequisite that a single currency alone can challenge the dollar hegemony is not yetready, therefore, the RMB regionalization roads need to abandon the idea of unilateralism,cooperation and development needs to be coordinated with the yen, challenging thehegemony of the dollar together. Regionalization to internationalization is more conducive to grasp this historicopportunity and is able to achieve the rapid promotion of influence of theinternationalization of the RMB, China needs to take the advantage of the advantage of thetrade between China and other developing countries.