The Internationalization Of RMB And Its New Opportunities

The internationalization of RMB has been a hot topic in recent years. The financial crisis in 2008 provided a great opportunity to accelerate the internationalization of RMB, and since then the internationalization of RMB has made many considerable achievements. However, there are still some problems during the process of RMB internationalization, for example, domestic financial market isn’t mature enough, and there are still too many limitations on the capital and financial account, etc. At this crucial moment in the process of RMB internationalization, the establishment of free trade areas, the Belt and Road Initiative, and the establishment of AIIB, all of them will definitely provide opportunities for the cross-border flow of RMB, the globalization of Chinese capital, etc, which will effectively accelerate the process of RMB internationalization.This paper first introduces some basic theories of RMB internationalization. Such as the concept of RMB internationalization, the analysis of its condition, and the benefits and costs of RMB internationalization. Then it analyzes the process of RMB internationalization. It reviews the history of RMB internationalization and expounds the current situation of RMB internationalization. Next it discusses the problems we are facing right now during the process of RMB internationalization. It makes a detailed analysis of problems such as the imbalance of RMB cross-border trade settlement, too many limitations on the capital and financial account, the immaturity of financial market and the lack of effective global flow mechanism of RMB, etc. Finally it elaborates the new opportunities for the internationalization of RMB. It mainly expounds the opportunities such as the establishment of free trade areas, the Belt and Road Initiative and the establishment of AIIB. And how they would help to solve the problems mentioned before.