A Study On RMB Internationalization

It is of great significance in economic development for a country to own an internationalized currency in the age of economic and financial globalization. Emphasis was laid on the internationalization of currency by countries in history, for the degree of which definitely shows the status of one country's economy in world economic system. The internationalization of RMB can bring revenue of seigniorage, decrease exchange rate risk, increase international influence and some other benefits. In general, although it may possibly entail impact of economic and monetary disturbance, its advantages prevail. Therefore, measures should be taken to back up RMB in the world currency system. And how to make RMB internationalized has been the core of concerns, which is the theoretical basis of this thesis.This thesis is to analyze problems concerning RMB internationalization from the governing factors of currency internationalization. Firstly, it makes an general theoretical analysis on the functions of international currency and the conditions and earnings of currency internationalization so as to pave the way for analyzing RMB internationalization afterwards; secondly, it presents the internationalizing process of Pound sterling, US dollar, Deutschmark and Japanese yen, and summarizes some important experience from it; thirdly, it analyzes the possibility of RMB internationalization through investigating the circulation of RMB in the neighboring countries of China and China's politics and economy; finally, based on the above analysis, the thesis proposes its solution in gradually facilitating the internationalization of RMB.The internationalization of RMB is a tough but significant task, study on which requires hard work and comprehensive consideration. For this reason, the thesis, by combining both theoretical analysis and empirical study, compares experiences and lessons of foreign countries from a historical perceive. It states the governing factors of currency internationalization historically, analyzes the conditions for RMBinternationalization as per those factors, and, focuses on introducing a feasible solution to RMB internationalization by comparing and borrowing foreign experiences.