Research On RMB's Internationalization

With the high speed development of China's economy and synthetic power, close concern of China's high rank policy makers and domestic theoretic circle are paid to the RMB's internationalization. And the research on RMB's internationalization has become the frontier science.Currency theory demonstrates the historic logic of its transformation from free currency to national currency then to global currency. It's a spiral progress of "general equivalents". From the angle of the currency theory, the exchangeability of one currency is the prerequisite and standard of the currency internationalization. But if an individual currency is expected to be a international currency, its function must be internationalized.Because the Chinese economic development comes to a new stage that it forms the economic characteristic as a big country. Compared with the internationalization of America, Europe and Japan, it's the best choice for China to mix the currency model of Europe and Japan.With the opening up and reform and the development of socialistic economy, although RMB is at the first stage of the currency internationalization, the improvement of our national economy and the macro-economy offer the basis of the RMB' internationalization. Meanwhile, China has formed some conditions which will shorten the progress of RMB's exchangeability.RMB's internationalization can benefit China the seigniorage, reduce the risk of the exchange rate, offer the convenience for district trade, finance the deficit and promote RMB's position in the international currency system. But at the same time it'll increase China's cost especially because of the limitation of the domestic policy and the uncertainty of the external economical environment.Then how to internationalize RMB? There are three ways:l. To promote the reform of foreign currency system and to form a complete set step by step; 2. To carry out the Asian strategy of RMB's internationalization and promote the position of RMB as the key currency in Asia. 3. To push on the strategy step by step.