Study On RMB Internationalization From The Perspective Of Phasic Features Of Money Internationalization

The existing problems of the financial world became known with the outburst andspread of the financial crisis starting in2008.Accordingly, the systematic risk of thecurrent world money system gave itself away during the financial turmoil. U.S dollarhas been the leading currency in the world money system ever since Bretton WoodsSystem. It becomes well recognized that the single U.S dollar being the core currencyof the world money system can not be enough for a sustainable development of theworld money system. Therefore, on certain level, the unreasonable development ofthe world money system is part of the reason for the financial crisis. As the issuer ofthe U.S dollar, the Federal Reserve needs to issue not only reserve currency,transaction currency as well as currency of settlement, but it faces problems of otherkinds. For example, it has to keep balance between its own macro economic policyand external needs external financial market. If there is malfunction in the Americanfinancial system, there are inevitably going to be problems in the world financialmarket. So it is obvious that, in order to develop in a more healthy way, the worldmoney system needs to reform.There is a concerted suggestion that it is imperative to promote the diversification ofthe world money system and put an end to the era when U.S dollar is the singleleading currency of the world money system. In order to achieve diversification, theworld money system needs to add more currency to the leading position. And in Asia,RMB can be a good choice, for Chinese economic development in the past threedecades is quite fruitful and successful. At the same time, RMB is becomingincreasingly recognized and accepted by the world market. It has been pointed outthat RMB can be the leading currency at least on Asian market in terms of China`seconomic, investment as well as trade volume.This article starts with the basic theories of world money and moneyinternationalization. It analyses the phasic features of money internationalization andtries to use those theories to study RMB internationalization. It can be divided into five parts. The first part is an instruction, explaining why it is necessary to analyzeRMB internationalization. The second, the third and fourth parts are to analyze indetail the current situation and existing problems of RMB internationalization. Thelast part is a summary which points out that RMB internationalization is a historicalchoice and should be looked forwarded to.