Research On The Promotion Path Of RMB Internationalization

Since the official introduction of the RMB internationalization strategy in 2009,the level of internationalization of the RMB has increased significantly.After experiencing rapid advancement before 2015,it has entered a period of slow development,during which scholars have studied the experience of the previous international currency and have come up with different renminbi promotion mechanisms.However,China’s economic circumstance is significantly different from that of the issuers of reserve currencies in that period.China has a more regulated financial system and capital controls are still being implemented.The research in this paper finds that the circulation of RMB overseas through trade can enhance the function of the RMB as international settlement currency.At the same time,due to China’s trade status in neighboring areas,these countries will link their national currency to the RMB through the role of the anchor currency.The link requires the renminbi as a reserve currency to facilitate market intervention by the central bank,which will undoubtedly strengthen the role of the renminbi as reserve currency.The existence of the offshore RMB market will also provide the official and private investment channels to facilitate the preservation,appreciation of the RMB assets.The empirical research in this paper also confirms that the RMB has indeed played the role of anchor currency in neighboring countries.At the same time,this paper will point out the corresponding problems and give policy recommendations from the exprience of Germany and Japan.