| With the steady and fast development of our country’s economic and foreigntrade,China’s overall strength is constantly enhanced, China has become the world’ssecond largest economy. But the RMB is also still in the initial stages ofinternationalization, the RMB’s international status need to be improved, ourgovernment has the ongoing internationalization of the RMB system construction,hoping to improve the process of internationalization of the RMB. After World War II,U.S. dollar quickly became the world’s most powerful currency, still retains the topspot of the international currency.From the dollars internationalization process, we can find that U.S. foreigndirect investment has created the internationalization of the dollar. Looking back onhistory can be found in the two world wars, on one hand, the United States exported alot of arms to belligerents. United States from a debtor nation became a creditornation, then they provided conditional dollars in loans to European countries to forceEurope to open their markets to expand exports; on the other hand, The United Statesincreased foreign direct investment, and the assets overseas continue to increase,while promoting U.S. commercial banks to make significant inroads into overseasmarkets, promoting the formation of the Eurodollar market, and finally, the influenceof the dollar unprecedented developed.The empirical analysis found that U.S. foreign direct investment increased by1%will make the U.S. dollar in foreign exchange reserves accounted for0.14%, the U.S.dollar increased the proportion of foreign exchange transactions accounted for0.14%,the dollar increased in the international bond trading accounted for0.33%. Therefore,U.S. foreign direct investment can significantly affect the internationalization of thedollar. In order to improve the internationalization of the RMB, China should increaseforeign direct investment, improve the investment of RMB regionalization, and tospeed up the adjustment of industrial structure, improve the core competitiveness ofour products, and then steadily push forward the reform of RMB exchange rate tomaintain the value of the RMB, accelerate the establishment of the RMB backmechanism, increase the willingness of overseas residents have RMB. |
