The Potential Factors Of RMB Internationalization To China

The Gold Standard was first established from the early 19 th century United Kingdom, when the United Kingdom became the World's first great empire relying on its powerful military and economic power, the Pounds Sterling naturally became the world's first major international currencies. In 1920 s, the United Kingdom's economic had been dragged down by the World War I, and the United States benefit from it during the two world wars. Then, the USD replace the Pounds Sterling as the world's largest international currency.Dollars became the first major international currency had brought great convenience to United States importers and exporters, also avoid the currency risk in international trade, while United States financial institutions fetch huge financial interests through its worldwide business which rely on dollars and various financial instruments; in addition, the dollar's internationalization bring in huge benefit of international seigniorage for the United States.In 2013,With the development of China's economy, China has become the world's largest cargo trade country, China's GDP surpassed Japan to the second place in the world just behind the United States, the demand of RMB internationalization is growing. However, the road of RMB internationalization's practice is long and tortuous.In this thesis, I used empirical model based on Benefit of International Seigniorage and some macroeconomic indicator to analisis the USD Internationalization which also refer to the potential macroeconomic condition and make relevant policy recommendations of RMB Internationalization.