The Background Of The Internationalization Of The Rmb, Channels, And Policy Analysis

Because of the 2007 U.S. sub-prime crisis, the global economy went into recession. The various defects of U.S. dollar-dominated international monetary system were exposed in the crisis, and made the crisis exploded and quickly spread throughout the world. As a rising economic power, China should seize this rare opportunity to push forward the International monetary system reformation and RMB internationalization. In order to become a important member of the international multi-currency system and bring global economic stability and development, China should spare no efforts to raise the status of RMB in the international monetary system.This paper firstly reviews the history major international currencies, as we wish to get some meaningful enlightenment. Then we analyze the context of RMB internationalization from home and abroad views, trying to clarify the opportunity, threat, gain and cost of RMB internationalization. Base on the analysis of present state of RMB internationalization, we propose some strategically road maps of RMB internationalization. At last, we study the outflow and inflow mechanism of RMB, point out the defects and give some suggestion to the current mechanism through the thoroughly analysis of international statistic rules. The conclusion is: the RMB internationalization not only relies on the free of Capital and Financial Account, but also depends on the favorable institution of shanghai international financial center(which is being) and Hong Kong international financial center.