The Research On RMB Internationalization

RMB internationalization of problem in China has been discussed for many years, but until recently the government has promulgated some substantial policies. It is queried that the International Monetary System in the current financial crisis, which's representative is Dollars and Floating exchange rate.People thinks the root cause of global financial imbalances is the dollar as the core of the international monetary system. So International Society calls for the International Monetary and Financial System are reconstructed. Many scholars believe that China should seize the opportunity to improve RMB's the position in the global monetary and financial system, accelerating the RMB internationalization.Monetary internationalization depends on the economic and social development to a certain stage, which is depending on the strength of a country's economy, international trade, investment and international financial impaction. In order to prevent the advancing rashly RMB internationalization to damage our economic and the financial stability, the author holds that grasp the time of monetary internationalization positively and the prudently, then advance RMB regional and internationalization Steadily and gradually.That is China's current selection. The article unfolds along "the feasibility analysis and current situation-economic effect-risk factors-countermeasures". The article is divided into five parts. Economic effect analysis and Risk factor analysis is the key. First is the introduction, which reviews that, the domestic and international experts about monetary international studies. The second chapter starts with monetary connotation to demonstrate the feasibility of the RMB internationalization in two aspects, which consist of economic fundamentals and financial environment, than analysis the current of RMB internationalization. The third chapter discusses the economic effects of RMB internationalization, mainly using qualitative analysis method to estimate that RMB internationalization may share the seigniorage of income, and net investment profit. Through study the correlation between the RMB exchange rate changes and the import and export trade by establishing Johansen Cointegration test based on the VAR model, the chapter analysis that RMB internationalization influence on import and export trade by simulating the different range of RMB exchange rate appreciation in the RMB internationalization process. Money internationalization is not only gains without cost. This chapter bases on the model of Griton and Roper to studied the relationship between monetary substitution and the exchange rate of risk. Combining with the advance of the specific conditions of RMB internationalization, the chapter analyzes the RMB internationalization risks which are the difficulty control of monetary policy, the impact of capital reversal, Triffin Dilemma. The finally chapter gives countermeasures which are about how to better promote RMB internationalization.China is the most vibrant and development potential of the country in the 21 st century. Along with the rapid development of China's economy, the international society of China, the gradually confidence of international market traders and the general public, RMB will be among the international currency.