The Internationlization Of RMB In Current Stage

The U.S. sub-prime mortgage crisis which has evolved into the global financial crisis has caused great impact on the countries and economies around the world, many countries have carried out a profound reflection in dealing with the financial crisis. China, as a large developing country in the world has been growing increasingly in the current financial crisis. China's sustained and steady economic growth has made a tremendous contribution to the stability of the global economy.The full-text is divided into four parts. The first part (ie, Introduction) has outlined the background and significance of the topics and made a review of the related literature of the research. The article describes the structure of the arrangements, innovations and shortcomings. Many people believe that China has possessed some basic conditions of the internationalization of the RMB. Some scholars have pointed out that the East Asian regional cooperation can achieve the internationalization of RMB as well as regionalization. However, there are still some difficulties on the path of internationalization of the RMB at this stage.The second part describes the specific content of the RMB internationalization, conditions and means of realization. The internationalization of RMB is the yuan as an international currency. With the steady growth of foreign trade and direct investment, we should promote the free convertibility of the RMB and improve the status of the RMB in the international trade settlement to become an international trading currency. With the opening the RMB capital account, make the financial products of RMB become a major tools in investment and make the RMB become an international currency of payment. Keeping the relative stability of Chinese currency and making it a major international reserve currency. We combine the market paths and institutional paths on the path of the internationalization of RMB. Only when the market forces of its own and the internal and external institutional arrangements are linked together, the internationalization of the currency function can be achieved.The third part discusses the advantages and disadvantages of the internationalization of RMB at this stage. From the Theory of Optimum Currency Areas, the yuan will face up to the internationalization. After the Asian financial crisis, the RMB has maintained to be a stable currency, so it made a contribution to the economic stability of countries in the world. Therefore, the RMB has begun to take an international condition because of the current situation of China's economic development. Since the reform and opening up, the continued growth of GDP, foreign exchange reserves and stable political situation have created favorable conditions for the internationalization of RMB. However, China remains a developing country. The current situation of economic strength is not enough to support the RMB internationalization. Compared with the United States and Japan, the economic volume and the influence of the foreign trade and investment still lag far behind. At the same time, there are still a wide gap between China and the developed countries about the financial sector. Financial reform is still facing many difficulties.Part IV focuses on the means and policy recommendations about the internationalization of RMB. From the principle of RMB internationalization, we should continue to maintain the growth of our economy in order to lay a solid foundation for the internationalization. Use the RMB initiatively in foreign trade and investment and other economic activities. Broaden the use of RMB. Speeding up the process of the RMB freely convertible, first make it realized in a small area, and then back to a wide range of gradually spread. Setting up an international financial center, make it the support and carriers for the RMB international. At the same time, focus on the cultivation of senior financial professionals to meet the needs of an international financial center. In the policy recommendations, we should correctly handle the relationship with the yuan and the yen, and actively promote the cooperation of the RMB and the yen. In addition, the relationship between the yuan and the dollar can not be ignored. Deepen the reform of domestic financial and enhance China's role in East Asia and status. On the issue of the route of RMB internationalization, there should be continued in-depth study and exploration, thus contributing to the internationalization of RMB.