Rmb From The Euro To Participate In The Legal Issues Of Regional Monetary Integration

The birth of the Euro has fulfilled the international unification of different currencies. The currencies have been internationally unified. This refers to the challenges to the traditional international law and the sovereign rights of nations. From the analysis of the legal concept of currency and the theory of traditional national currency sovereignty, I believe that the European Monetary Union will not harm the sovereignty of traditional national currency, and the Euro is the development of the concept of national currency sovereignty.The foundation of the EMU and the ECB takes place along with the promotion of the nuclear nation_ Germany, the cooperation of the axial nations_ France and Germany, the DM acting as the model to design the Euro, and the cost of every European Countries to abandon their monetary sovereign rights. The unification of the currencies of Europe happens along with the unification of the economies, and at the same time the unification of laws and politics also develops stably.The achievement of monetary and legal integration of European continental law countries is related to the tradition of their respect for the authority of international law. From the tradition of coordination of domestic law and international law, we know that the Asian monetary cooperation also has feasibility. German currency unification under the framework of "Basic Law" is compulsive, but there is legislative standoff between the "anti-secession laws" and "de-China" cross the strait. Hong Kong and Macao "Basic Law" make the Chinese currency not possible to achieve the mandatory uniformity. Therefore, the complexity of China's law and politics hinders the domestic monetary cooperation.The complexity of the law and politics of Asian countries hinders the regional currency cooperation. EU legal, political, and economic integration is synchronous, but legal integration in Asia is limited to the level of economic cooperation. The foreign policy of active participation of Germany and the highly independent legal status of the federal bank enable Germany to become the core country of regional monetary cooperation, but China's foreign exchange controls have not been opened enough to enable the internationalization of RMB because of the Foreign Exchange Management Regulations. Now RMB current account has been opened for a decade, but the capital account has not been opened yet. So at present China is unable to undertake the burden of the core country of regional monetary cooperation.The concept of "Asian Monetary Fund" and "Manila Framework" are early envisions on the Asian monetary cooperation. After the Southeast Asian financial crisis, countries strengthened the legal integration in financial field. "Chiang Mai agreement" will expand the currency exchange and cooperation of East Asian countries. The construction of China-ASEAN free trade zone under the WTO framework will promote the regional monetary cooperation. To sum up, non-political and non-interference of sovereignty principle is a practical choice of the Asian currency cooperation. This is a legal integration of purely economic level, unlike the European Monetary Union integration.Nowadays, HKD and RMB integration is the first step for RMB to become internationalized, and then lead the Asian monetary cooperation. "One country, two systems" and "Hong Kong Basic Law" regulate the Hong Kong Special Administrative Region's high degree of autonomy. However, based on the analysis, I don't think HKD and RMB integration violates the "Basic Law". On the contrary, it is the development to the concept of Hong Kong's monetary autonomy. On the issue of how to coordinate the monetary system of Hong Kong and the mainland, the paper suggests the reference of the model of the European Central Bank.WTO on the provisions of border trade provides preferential trade policy basis between Hong Kong and the mainland of China, and will promote the monetary cooperation of the two places. The practice of CEPA between Hong Kong and the mainland increased the cooperation and integration of the financial area, thus it laid a good foundation for the two to start a legislation of a directly substantive monetary cooperation in the near future.At present the legal supervision of RMB's circulation in Hong Kong needs to be strengthened. Therefore, the State Council has approved the Hong Kong banks to conduct RMB business, and ratified financial institutions from mainland to issue RMB-denominated bonds in Hong Kong early this year. This will promote the regulation of the circulation of RMB in Hong Kong and the integration of the two currencies.The legal system constraints of the mainland and Hong Kong monetary integration includes: the control of inflow of workforce from the mainland is unable to be opened, the mainland's foreign exchange control will make RMB not freely convertible, and the standard of EU's "stability and Growth Pact" is difficult to be implemented in China.Hence HKD and RMB integration has to be gradually realized with the development of China's overall economic and law. It is a gradual process. RMB's domination to the Asian currency cooperation is certainly a long-term process. RMB's priority business is to achieve its capital account liberalization and internationalization.This article overall may be divided into three parts.The first part gives a brief introduction to the birth of the Euro and its present situation, and elaborates the challenge and development of the Euro to the traditional country currency sovereignty, and expounds the international law status of the Euro. Through comparison with the Bretton Woods System and the Jamaican System, this part expounds the advancement of the Euro system. The Euro's innovation in the international law, is the model of region currency cooperation. It has a demonstration effect to the integration of RMB and HKD, and RMB's participation in the Asian currency cooperation.At the second part, through the contrast of the coordinated policy of German currency integration and RMB, we conclude that RMB still hasn't realized its internationalization, and it is unable to lead the Asian currency cooperation. Thus embarking on reality, RMB should first of all realize its domestic currency conformity.At the third part, we draw a conclusion that RMB can cooperate with HKD, then speed up its internationalization advancement, and thus realize its leadership to the Asian currency cooperation, through legal proof and practice summary to the cooperation between the currencies of the mainland and Hong Kong.