Study Of RMB's Internationalization Process And Conditions

In recent years, China's comprehensive national strength in the political, economic, and cultural influence on the world are expanding, especially in dealing with the global financial crisis, outstanding performance of China, to show the world a trustworthy image of a big country, which greatly improved China's reputation in the world. RMB's international status has also been an unprecedented recognition, which undoubtedly will lead to a more self-confident yuan to the world. Changes in the history of world currency is a history of survival of the fittest, International currency competition is a "strong currency" expulsion "inferior currency".RMB international process will be a long historical process, along with China's development and progress, openness and prosperity. Therefore, the RMB become a mature international currency that is when China really becomes a world power of day.This paper studies the theory of internationalization, by studying the nature of international monetary theory and the basic characteristics of the international monetary ,discusses the internationalization process is a long and complex historical process that view. The going internationalization of the yuan road, but also with gold, the U.S. dollar and other currencies have been the same as an international will undergo this change process. However, in today's world economic integration, monetary credit-oriented environment, the RMB internationalization will face a variety of risks and related conditions, the internationalization process is doomed to not be smooth. In recent years, due to the growing body of China's foreign relations, the RMB has been in neighboring countries have some of the international monetary functions, and even in some countries become a "hard currency", the trend to go abroad has become increasingly significant. Therefore, in this background, research RMB internationalization process and conditions, will undoubtedly have a strong practical needs and important theoretical significance.In the first part, we study the basic theory of internationalization, review the development of international currency status, as well as the internationalization of domestic yuan on the main data. Then described the currency internationalization, the International Monetary and other important concepts and the distinction between the international monetary and freely convertible currency differences and contact. Research a country's currency measure of international standards, so that the level of RMB internationalization is still at an early stage, when compared with other major international currencies with large gaps.In the second part, mainly from a historical perspective analysis of the gold and the dollar as the international currency of the natural historical process. Gold and U.S. dollars by drawing on the experience of the internationalization process, in order to smooth the internationalization of the RMB future basis. Internationalization of the road is a country's participation in the international division and continues to open up , but also a country's financial market continued to improve the construction of the road. An international currency needs the world's leading financial markets, which affect a country's currency in circulation overseas ,Then this section is also located on the RMB internationalization process and development of the status quo analysis. In the third section, the main requirements for the internationalization of RMB mainly affect domestic and foreign conditions for research. Conditions in the domestic impact, mainly from the basic conditions of the country's overall economic strength, support conditions the degree of liberalization of financial, security conditions to protect the market stability as well as the condition for deepening financial markets to promote the level of systematic study of the four dimensions. That although the RMB is currently possesses the necessary international basis, but far from to become an international currency. Impact of conditions in foreign countries, the main objective of the RMB to actively participate in the creation of development suited to their own new international financial order and effort to strengthen the Yuan's international credit. RMB can be determined in the international flow of "money votes", only with more"money votes", the RMB internationalization can be larger in scope. According to the data shows that China is becoming the products market of Asian countries ,we should actively take advantage of this opportunity to engage the yuan as a regional"key currency". In the last part , we analysis the process of internationalization of RMB may face the risk , and make corresponding countermeasures against potential risks.Marx believed that economic development is a form of natural history. RMB internationalization of the economic structure is also a natural choice of history, this is bound to be a long-term and complex trend. We can not deliberately seeking to become the world's currency, which will undoubtedly hinder good economic development of China. This paper argues that the internationalization of RMB fatly or slowly depending on whether the development of our country's interests. We believe that in the new century along with the continuous improvement of China's financial markets, growing national strength and international status of the continuous improvement ,RMB eventually become a very influential one of the world's financial markets.