Renminbi Regionalization Of Legal Research

The expansion of economy of scale of one country urges its sovereign currency to play monetary functions. As economy of scale of China expands increasingly, RMB (Chinese unit of currency) plays a role of medium of exchange in cross-border trade between countries in China-ASEAN. However, the high speed development of economy of China doesn’t match its international status of RMB, unbalance situation that strong trading power, finance’s weakness extremely suffers from the impact of the international monetary system of U.S. dollars centered. In recent years, the reason that holders possesses of RMB is related to RMB in1997Asian financial crisis. In other words, what people focus more is the revaluation anticipated of RMB instead of similarity to free convertibility, convenience and efficiency of U.S. dollars. At present, these factors that it has not completely been to realize convert freely of the capital account of RMB, domestic financial regulation is imperfect and economy of China depends on foreign trade lead to the situation that regional development of RMB is to be confronted with bottleneck restriction. Therefore, it is necessary to formulate and perfect the law which regulates cross-border circulation of RMB and related financial policies to protect in order to the order of cross-border circulation of RMB. In this paper, firstly, the author starts from the definition of regionalization of RMB, and puts forward its theoretical source, and based on this, the paper states the strategically significance of regionalization of RMB. Secondly, combined with the present situation of cross-border circulation of RMB in trade between China and ASEAN nations, the author analyzes the internal and external conditions of establishing regionalization of RMB, and then demonstrates the feasibility of its regionalization. Then, through contrasting international system construction mode of the U.S. dollar, the Euro and the JPY, this paper concludes significance of system construction which is good for regionalization of RMB. Finally, on the analysis of the deficiency of current law, regulations and relevant policies, which regulate cross-border circulation of RMB, based on this, the paper aims at proposing the legal system construction of cross-border circulation of RMB in China-ASEAN free trade area.