Research On The Internationality Of RMB Under The Reform Of International Monetary System

Since 1980s,China has made great achievements in economic construction,the comprehensive national strength has been significantly improved,and the economic and political influence in the world has been increasing.In particular,in recent years,China deepens reform in the financial sector,and the conditions of the RMB internationalization are gradually improving.In addition,the international financial crisis in 2008 led to the reform of the International Monetary System,which provides a rare opportunity for the internationalization of the RMB.Firstly,this paper analyzes the feasibility of the internationalization of the RMB,through the introduction of China's basic economic conditions and the reform of the International Monetary System,found that the RMB has already had the basic conditions of internationalization.Secondly,this paper researches the current situation of RMB internationalization from the reform of the domestic financial system and the roles RMB plays in the international economic activities.Then,this paper constructs the index of RMB internationalization,from the perspective of the RMB currency function and the need home country economic.And this paper estimates the index of the RMB and other six kinds of major currencies such as US dollar,the Euro.Finally,In order to promote the RMB internationalization better,this paper takes the five major international currencies as the research object,which are US dollar,the Euro,the GBP,Japanese Yen and Swiss Franc,and studies the factors of currency internationalization by building a measurement model.According to the theoretical analysis and empirical test,this paper realizes,First of all,although some of the conditions are not ripe,but the RMB has already had the basic conditions of internationalization;Second,the internationalization of the RMB has a great progress,but the degree of internationalization is still very low;In the end,the basic economic situation,the degree of financial market,the stability of the currency and the development of the society have significant impacts on the internationalization of currency.In order to promote the RMB internationalization further,this paper thinks that we should start from the followings:Deepening Economic Reforms,achieving sustained economic growth and foreign trade scale expands unceasingly;Continuing to pursue the RMB cross-border trade settlement;Realizing the convertibility of RMB capital items gradually;Promoting the RMB foreign investment in building the Belt and Road;Building the RMB offshore and onshore market,enriching the RMB products.