Trend Of RMB Internationalization And Its Effects On Sino-Korea Economic Relationship

The RMB internationalization has been a hot issue from the beginning of the21century. After we underwent financial crisis in2008, we realized that it is very risky to only rely on USD for our economy. As a result of the financial crisis, we also experience reducing our value of wealth because of depreciation of USD. Nowadays, the value of USD is still decreasing as the American government is maintaining quantity-easy-policy.China also has experienced a lot of losses due to decreasing value of USD. China is the biggest investor of the USA bonds, and China has a lot of USD reserves in the national bank. Therefore, China realized that they need to make RMB internationalized like USD, EURO, or even YEN. Actually, it seems that the Chinese government already has started a plan for RMB internationalization.There are a lot of economic, politic and diplomatic advantages when it comes to becoming an international currency. Thus, China wants to make RMB be accepted in the world as an international currency. If this plan came true, it is apparent that there will be a lot of changes and influence to the world.As Korea is one of the closet countries of China, and there are a lot of business relations between two countries, RMB internationalization would bring significant influence to Korea. In this point of view, we would like to analyze the recent economic relations between two countries, and finally analyze possible effect of RMB internationalization on Sino-Korea trading, finance, and exchange rate.We hope that this research would help promote economic profits and bring friendly r elations between two countries.