Study On The Issues Of Rmb Regionalization In Post-crisis Era

In recent years, as the RMB has improved its international status, especially the RMB has circulated with a large amount in some countries and regions which surround China, the topic of RMB regionalization has aroused extensive attention. In2008,the international financial crisis that caused by the United States subprime mortgage profoundly revealed flaws of the U.S dollar_dominated international monetary system,which greatly reduced the status of the dollar, and the voice of reforming the intenational monetary system is getting higher and higher. Besides, the United States outbroke the debt crisis in2011, which made the weakening dollar come at a worse time, and dollar’s credibility fell further. Euro quickly developed to the second international currency since the birth, and it challenged the the supremacy of the dollar at one time, but Greek debt crisis began to develop to European sovereign debt crisis, at this time, it also was a crisis of confidence in Euro, the international status of Euro was seriously affected. Whether global financial crisis or debt crises in the euro zone and United States provides a good opportunity for RMB regionalization, so we should seize this opportunity to promote the development of RMB regionalization and raise the international status of RMB. In such a situation, the analysis of the feasibility and present situation of RMB regionalization, and how to promote RMB regionalization in the future are issues we should study on, which is also the essay’s focus.The article altogether has five parts. At the beginning part, it introduces the importance of this study, then it concludes the research results of RMB regionalization at home and abroad.In the second part, it firstly tells the definition of RMB regionalization. RMB regionalization in this article is not refers that RMB will become the single currency in Asia, but become one of the key currencies through the long-term cooperation and competition in the regional economic and trade activities, then it can perform the functions of valuation and trade currency, asset currency, investment currency within a certain geographic area. Then analyzes the return and risk of RMB regionalization, Through four aspects analyses the income of RMB regionalization. First, it can help to increasing national wealth; second, it can help to promoting the development of international trade and investment; third, it can help to promoting the development of our financial market; fourth, it can help to increase the status of our country. However, RMB regionalization also hide some risks, to some extent, it may have negative effects on the effectiveness of macro-economy and the stability of financial market in our country.The third part analyzes the feasibility of RMB regionalization. Firstly, it analyzes the process of main international currencies’development, such as US dollar and Euro.After analyzing their developing history, we get some requirements of currency regionalization, including powerful economic forces, large trade scale, open and rich financial market system. Considering these elements, we can conclude that RMB has got some requirements for regionalization. Our country’s powerful comprehensive economic strength, deepening economic opening level, East Asia regional cooperation in economic and financial fields, the opening and developing of our country’s banks, these all provide favourable terms for RMB regionalization. In addition, it also analyzes the new international situations of post crisis era from two aspects of economy and system, these all produce fine external surroundings for RMB regionalization.The forth part focuses on analyzing present situation and problems of the RMB regionalization. Recently, RMB cross border flow is realized by border trade, cross-border travel and visiting payment, cross-border investment,etc. Througn the research of RMB circulation in Hong Kong and Macau,the ASEAN region,the western and north-easten bordering countries of China, it can conclude that RMB cirulation has reached a large amount in some countries and regions which surround China. Besides, both currency exehange agreements and cross-border RMB payment have made an amazing leap forword.Therefore,through analysis,we found some problems in RMB regionalization:first, there are some imbalances in RMB regionalization, mainly reflected in geographical imbalances, imbalances in performing the functions of international currency, imbalances in the field of border trade settlement. Second, our financial market hasn’t developed well, which is far to meet the requirement of RMB regionalization. Third, RMB regionalization has faced pressures coming from US and Japan, also, in future development, RMB regionalization will cause some risks which we have to deal with.Considering the existing conditions, status quo, problems and new background, in the last part the article make some suggestions on how to promote RMB regionalization in post crisis era as follows:first, further promote Cross-border circulation of the RMB; second, advance RMB regionalization progress through regional integration; third, enlarge level of capital items opening; forth, improve the construction of RMB offshore financial centre of Hong Kong; fifth, coordinate the relations between RMB Japanese yen.