A Study On The Path Of Promoting Renminbi Internationalization

The first chapter of this paper is a preface, which introduces the research intention and the general framework of the paper. In this part, the features and inadequacies of the paper are also touched upon.The second chapter is a summary of the theories and researches on currency internationalization and regionalization. Starting from the concept of currency internationalization, the author analyzes the cost and profit of currency regionalization and internationalization, then goes into details about their theories, and then sums up the research on Renminbi internationalization, thereby turning to the point of the paper.The third chapter sums up and analyzes the experience of credit currencies internationalization including British Pound, US Dollar, Deutsche Mark and Japanese Yen. Three types of paths for internationalization are identified, namely, internationalizing by relying on national strength and supporting super power, evolving from regional integration to internationalization, and promoting internationalization through financial market reform. According to the author, in terms of Renminbi internationalization, it is hard for us to simply copy the history of British Pound and US Dollar; instead, we should learn more from the experience of Deutsche Mark and Japanese Yen.In the fourth chapter, the author devises timing, principle and path for Renminbi internationalization based on the experience of Deutsche Mark and Japanese Yen stated in the third chapter. The author believes that now it is good time to initiate Renminbi internationalization and three principles are summarized for the process, namely, to be proactive, controllable and gradual. Accordingly, the path option for Renminbi internationalization is generalized, that is, from being accepted in surrounding areas to regionalization and then to internationalization, and concurrently from settlement currency for trade to settlement currency for investment and then to reserves currency. It is suggested that Renminbi internationalization be achieved via trade channel first and then financial channel.The fifth and the sixth chapters are detailed explanation of the path for Renminbi internationalization. The fifth chapter analyzes the evolution of Renminbi from being accepted in the surrounding areas to regionalization, whose aim is to make Renminbi regional key currency. The evolving process starts from the region covering Hong Kong, Macao, Taiwan and ASEAN countries and ends in East Asia. Two difficulties for this path are also analyzed. At the end of the fifth chapter, the author also generalizes three key supporting tasks on the path towards Renminbi regionalization.Similar to the previous chapter in structure, the sixth one analyzes the evolution of Renminbi from regionalization to internationalization. The major target for this phrase is to realize comprehensive Renminbi internationalization. The author explores relevant methods and summarizes difficulties in the process. At the end of this chapter, the author also generalizes several key supporting tasks on the path towards Renminbi internationalization.