The outbreak of financial crisis in2008make people realize the importance of adiversified international monetary system to the development of economy and thestability of financial market. There is a strong will to reform the current unipolarmonetary system which is dominated by US dollar. Currency internationalizationbecame the theoretical hotspot again. The goal of this paper is to explore thedetermining factors of currency internationalization from the internationalcompetition perspective.The paper starts from the theory of international currency competition and givesthe definition of international currency. Through the regression analysis and thecomparison among the different internationalization paths of dollar, euro and yen, weconclude that the major determining factors of international currency competition areeconomies of scale, maturity of financial market and the stability of currency value.Historical persistence, network externalities and government willingness are alsoimportant influential factors. However, the currency appreciation will not contributeto currency internationalization. The paper settles in the issue of RMBinternationalization. The advantages and disadvantages of RMB internationalizationare discussed based on the reality of China and the research results above. |