Study On The Issues Of RMB Regionalization In The Background Of New Situation

As a global leading currency, US dollar has been in the dominant position in global economic communication. So it is in Asia, the dollar has been the dominant currency in regional economic trade; many countries also spontaneously link its exchange rate with US dollar.With the swift and violent development of economy and technology, economic relationships among countries including Asian countries have been strengthened. China, as the biggest country in Asia, has a great potential; at the same time, it has very good relationships with the other Asian countries. So China plays an important role in regional steady development and prosperity. However, using US dollar in regional economic communication will not only increase the cost, but also cast a threat to regional economic peace and steady, which can be reflected through Asian financial crisis and the world economic crisis in 2007. In these two crises, US dollar helped spreading the crises. After that, Asian countries realize the importance of regional cooperation.China has always been focusing on its relationship with other countries in economic and cultures, participating in regional relationship coordination, positively promoting regional currency cooperation. Along with our country's economic exchanges with other countries, the more frequent RMB circulate regionally, the greater increase authority RMB will has in the region. RMB has been regionally accepted and recognized, the RMB regionalization has begun. With this background, what conditions do we have for RMB regionalization, where have we been in achieving RMB regionalization, how should we make RMB regionalization become true are issues we should study on, which is also the essay's focus.This article altogether has four parts. At the beginning part, it introduces the background of this study and its importance, then it introduces relative theory of currency regionalization and comments on it. In the second part, this article tells the definition of RMB regionalization. RMB regionalization is a process in which RMB becomes regional valuation and trade currency even asset currency, through cooperation between China and other regional countries. RMB's regionalization can get some experiences from the process of other currency's development, such as US dollar, Euro, Japanese Yen. After analyzing their developing history, we get some prerequisites for currency regionalization, which includes strong economics, open financial market, good regional cooperation. Considering these elements, we think RMB has got some prerequisites for regionalization, including increase in economic, open financial market, progress made in regional cooperation and good beginning of overseas RMB's market development.The third part focuses on analyzing present situation and problems of the RMB regionalization. Currently, RMB's cross border flow is realized by border trade, cross-border travel payment, cross-border direct investment, etc. Currency exchange agreement and cross-border RMB payment are two performances of RMB regionalization. Not only promoting regional cooperation and economic prosperity, they also benefit RMB regionalization. Through analysis, we found some problems in RMB regionalization. First, there are some restrictions on RMB's circulation, which can be manifested by low flow scale overseas and unbalanced cover in region; second, our financial market hasn't developed well for RMB regionalization; third, we have to face pressures coming from US and Japan; also, in future development, RMB regionalization will cause some risks which we have to deal with.Considering the problems that are in the way of RMB regionalization, in the last part the article analyzes the influences to RMB regionalization by financial crisis. Although the crisis caused volatility to the global economy which will block RMB regionalization, there are still hopes to realize it. Next, based on the background, the article makes some suggestions on how to promote RMB regionalization as follows:first, to continue to enlarge the areas for RMB circulation; second, to perfect our financial market focusing on its deficiencies; third, to take full use of Shanghai's advantage in finance; last, to promote RMB regionalization by east Asian currency cooperation.