The Analysis And Precaution Of Risk In RenMinBi's Internationalization

China has made a big progress in its economic since Reform and opening-up policy in 1978. RMB is becoming more and more popular among the countries around China, such as, Vietnam, Cambodia, Mongolia, Myanmar and so on, as China has taken a big share in the international trade and this trend is more, and more obviously. Especially, After the United States subprime mortgage crisis, China tried its all things to do to reduce losses from this crisis and China really made it true. And so, RMB gained worldwide attention. At the same time, the Chinese government actively promoted the process of internationalization of RMB step by step.This issue about RMB internationalization has been in-depth researched among the domestic and foreign scholars from different perspectives. For example, China would take a big profit by the internationalization of RMB from the cost and benefit angle; the financial industry, banks,even the central bank would face lots of risks, they never considered ago. In short, different scholars still have different opinions in some specific questions, but as to the seigniorage revenue, the reduction in trade exchange rate risk,and enhance China's international status and so on, they have the same opinion that the internationalization of RMB is positive and they also suggest that the government take actively action to promote the RMB's internationalization.Based on those research, this paper focuses on the risks of the internationalization of RMB, and there are five chapters, the first chapter is an introduction section, It talks about the the Chinese Government and the Pesple's Bank of China has taken various measures to actively promote the internationalization of RMB After the United States subprime mortgage crisis. So studying on risks of RMB's internationalization is a practical significance.The second chapter for this article is the theoretical basis. It talks about the meaning of the international currency, the conditions RMB should have to be international, and Marxist political economics, financial deepening theory, Mundell's impossible triangle theory,optimal currency area theory for this theme. The third chapter is about risks and the classification of risks, a country's currency will face if it promote its currency internationalization. A country's exchange rate policy, monetary policy, fiscal policy and a country's economy would be effected heavily and I will analyse the reason of the risks. ChapterⅣI, that is, China would encounter various risks in the process of the internationalization of RMB, such as, risk of capital flow, the effectiveness of monetary policy, risk of currency substitute and so on. Finally, ChapterⅤ, is all about building a comprehensive risk control system to ensure the progress of internationalization of the RMB smoothly.