Factors Influencing YEN's Internationalization And It's Inspiration To China

The Asian financial crisis in 1998 caused the economy of our country largely, However, it also bring more opportunity in Promoting the economic strength and international image to China. In addition, China Maintain a strong and steady growth under the crisis in 2008, this phenomenon Attracted large attention about RMB in the world. These concerns are mainly concentrated in the level of RMB exchange rate, the reform of foreign exchange rates and the internationalization of RMB. It also suggests that RMB plays a more and more important role as payment in the world economy. It is undeniable that Monetary International will bring one country huge economic benefits. should we let the RMB go the world for this unpredictable economic interests? Currency will be influenced by what factors in it's international process? How to deal with these influence In the internationalization process of RMB? Are there any typical examples can be as reference to RMB? Depth discussion for these problems will make RMB internationalization process avoid setbacks, reduce unnecessary losses, this is also the key of this study.The road of any currency's internationalization is not easy, We will inevitably undergo various challenges and difficulties On the way of RMB internationalization. So ,it's very important to do well the predict in advance. Japan is connected closely with China in economic and cultural development, the internationalization of Yen has experienced countless setbacks, It influenced by domestic economic impact, The more it experienced the international society's huge pressure. The improper handling to influence and pressure made Japanese economy pay a huge cost. So, we should analysis carefully on the internationalization of YEN, which can also be a guidance to RMB's internationalization. We can also avoid many difficulties by doing this. In This paper, the author firstly described the development and internationalization of Yen, then established econometric model which based on the data of Yen from 1980 to 2009, the conclusion is that GDP and trade dependence have long-term impact on internationalization of Yen. In addition, we also analysis some exogenous variables carefully, like monetary growth rate, Yen regulation and the construction of international financial center. Through these quantitative and qualitative analyses, we provide some reference to the path of RMB Internationalization.