Challenges And Strategies Of RMB Internationalization During Economic Downturn

Along with the continuous growth of China's economy in high speed,China's GDP has ranked the second place in the world.Meanwhile,RMB internationalization has achieved the significant progress in the aspects of cross-border trade and investment & financing,currency swap and acting as reserve currency,etc.But since2011 China's economic growth rate went down continuously and this also brought the tremendous challenge for RMB internationalization process.In this paper,first of all,through the theoretical analysis,the relationship between the economic growth rate and currency internationalization was discussed based on the connotation and characteristics of the currency internationalization,then to result in the conclusion that the economic growth rate can generate the constant influence on currency internationalization through multiple factors.Secondly,the main policies and measures Chinese government used to promote RMB internationalization under the background of constant economic growth rate in high speed,and the achievements RMB internationalization has gained in the aspects of cross-border trade and investment & financing,currency swap and reserve currency were both reviewed briefly.Further the challenges following problems has proposed to the continuous promotion of RMB internationalization were also discussed accordingly: the continued RMB depreciation,the emerged shrink of cross-border trade,the uncertainty existed in the long-term stable growth of abroad investment,and the potential financial risks caused by gradually increased non-performing loan under the continued downward pressure of China's economic growth rate.Then the influence the economic growth rate did have on US/ Japanese currency internationalization was also discussed through the review on the history of US/Japanese currency internationalization,its inspiration for RMB internationalization was also analyzed accordingly.Finally following policy suggestions were also proposed for how to promote RMB internationalization during the economic downturn,including to keep the continuously economic growth in fast speed,improve financial regulation level,promote science and technology development and manufacturing industry upgrading,facilitate abroad investment and regulate and channel the non-performing assets etc.