Causes, Effects, And The Reality Of The International Reserve Currency Diversification Learn

March 23,2009, Governor Zhou Xiaochuan of the People's Bank of China issued an article and pointed out, The outbreak and spread of this financial crisis Prompted us to face an old and unresolved issues once again, that is what kind of international reserve currency could maintain global financial stability and promote world economic development. However, The outbreak and spread of this international financial crisis in 2007 indicates once again, this issue is far from being solved, moreover, the inherent weaknesses of the current international monetary system makes it even more severe. Apparently, dollar-dominated international monetary system has been seriously challenged, A new international reserve currency which should have a stable valuation benchmark and be generally accepted around the world is undoubtedly rebuilt, because it is undoubtedly the best choice to prevent the repetition of similar crises, however, probably it is a long-term goals achieved successfully. Within the current and then a long period of time, creatively to reform and improve the existing international monetary system, particularly to promote the dollar-dominated diversification of the international reserve system, will become a more viable option. Accordingly, On the background of global economic integration, This paper is on the basis of a detailed analysis on the evolution, causes, influence, development trend of the international reserve currency diversification. In my opinion, For all the countries concerned, how to make full use of opportunities, respond to challenges actively, reform the existing international monetary system, and establish a more rational international reserve system, is not only the problems to be solved urgently, but also an important guarantee of the stable development of the world economy in the future. As the largest Foreign exchange reserves in the World, China should participate in reform actively, and push forward the process of regionalization and internationalization of the RMB steadily, in the long run, especially it is the most realistic path to promote the RMB to be one of the international reserve currency in the future. All these are of great theoretical and practical significance.This paper is divided into six chapters:The first chapter is Exordium. Exordium first introduces the research background of this paper, the research theoretical value and practical significance, then introduces a wide range of research literature and the status quo on international reserve currency diversification, and then make a simple definition for basic concepts related to international reserve currency diversification. Finally, Exordium presents the research program and its corresponding structural arrangements.The second chapter reviews and sums up the institutional evolution of the diversified international reserve system. In order to studies detailedly a wide range of causes, influences, future development trends and inspiration and reference to China of the international reserve currency diversification, So from the institutional evolution point of view, reviewing the development process of the diversified international reserve system is absolutely necessary. According to the evolution process of the international monetary system, correspondingly, this chapter is divided into three parts:the gold-sterling reserve system, the U.S. dollar-gold reserve system, diversified reserve systemThe third chapter analyses the causes of international reserve currency diversification.studying detailedly the causes and background of international reserve currency diversification, not only contribute to a better understanding of the current international reserve system and its impact on the global economy, but also help to provide inspiration and reference for reforming the current international monetary system. The causes of international reserve currency diversification mainly includes the relative changes in economic strength in major industrial countries, the inherent weaknesses of "Triffin dilemma", the change of the attitude of the major industrial countries, the management needs and preservation purposes of international reserve currency, the serious flaws of current international monetary system, and so on.The fourth chapter is the impact of international reserve currency diversification on the world economy. Compared with the unit of the reserve system, although the pattern of international reserve currency diversification showed great advantages, including the relative solution of "Triffin problems", promoting the coordination and cooperation of monetary policy around the World, the relative improvement of the currency management of the international currency reserve assets, the alleviating and correcting the imbalances in Global Economy, the diversified means and sources of regulating the balance of payments around the World, and so on. However, the diversified international reserve system has obvious deficiencies. Because while it to overcome the drawbacks of the original partly, on the other hand, it has also brought new problems for the current global economic development, mainly for the "New Triffin problems" intertwined with the global economic imbalances, the global Excess liquidity and global inflation, causing the complexity of international reserve currency management, aggravating the speculation of international hot money.The fifth chapter analyses the development trend of the international reserve system in the future. Multi-polar world political and economic situation will be eventually reflected in the currency level, the competitive reserve currency will be frequent. With the advancement of the structural reforms in the Euro area and the growth in emerging market economies in Asia, multi-polar international reserve currency system such as dollar, euro, yen, and other from emerging countries will be more balance. The evolution of the international monetary system in the future, should be on the basis of "three steps" strategy, that is short, medium and long-term. Specifically, The first step is to build international reserve currency diversification, achieve the realistic goals of reform in the short term; The second step is to reach the harmony and co-exist of the enhanced SDR and multi-polar international reserve currency, achieve the feasible goals of reform in the medium term; The third step is to create the world currency unit, achieve idealistic goals of reform in the long term.The sixth chapter is the real inspiration and reference of the international reserve currency diversification for China's economic development. This chapter is not only a summary of this paper, but also reveals the practical significance and the ultimate goal of this research. From the unit to the diversification of the international reserve currency will be the real choice and basic direction in the international monetary system reform in the present and future. In addition, the regionalization and internationalization of RMB is inevitable strategic choice in China. As the World's largest foreign exchange reserves and the holder of U. S. Treasuries, In order to create a better environment at home and abroad for China's economic development on a new starting point, China should actively promote the process of regionalization and internationalization of RMB. Research experience at home and abroad, combined with China's reality, I believe that, in order to reduce the Dependence on the dollar in foreign trade and cross-border investment, especially lower the risk of foreign exchange reserves, China should actively guard against risks outside the reserve, and avoid falling into the trap; Participate in the reform process in international monetary system, promote the diversification development of foreign exchange reserves; Actively promote the exchange rate reform, and enhance flexibility in monetary policy; Strengthen regional monetary cooperation, secure the process of promoting the internationalization of RMB, All these are the most realistic measures which make china cope with the evolution of international monetary system, and minimize the risk of foreign exchange reserves and exchange rate.