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Research On RMB Internationalization Under Reform Of International Monetary System And IMF Financial Reform

Posted on:2014-12-04Degree:MasterType:Thesis
Country:ChinaCandidate:C Z LiFull Text:PDF
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The current International Monetary System----Jamaica’s Monetary System hasbeen maintained stable development and improved inherent shortage of The BrettenWoods System to some extent. However, the US dollar has still been the mostimportant global storage and settlement currency in this system which exhibit thefeature of flexibility and instability of it and decide the system can not overcome“Triffin Dilemma”.After the emergence of financial crisis, revolution of international monetarysystem has been reached a consensus around the world. China also tries to propelRMB Internationalization and establish multiple monetary system, including the USdollar, the Euro, the Yen, the Yuan and the Special Drawing Rights as the mainpattern.Under the current framework of the IMF, China has the ability to improvethe share of SDRS in IMF. Nowadays, the share of SDRS of China is3.72%, butChina makes a large contribution to GDP as well as international trade in world topthree. In2010, IMF has decided to adjust some shares of SDRS for some countriesand China could hold this opportunity for revolution of more speaking rights and shares. What is more, China can take an active part in the reform of internationalmonetary system by purchasing IMF bonds or any other kinds of equalities. In2009,bank of China made an agreement with IMF, which permitted China to buy less than320billion SDRS (about500billion US dollars). This was the first transaction madebetween IMF and RMB. Then in order to relieve the global economic crisis and theinfluence of currency, IMF had to use RMB to solve the serious issue which in turnverified that the growing effect of RMB in international monetary system. At the sametime, RMB internalization has become the focus issue around the academic area in theworld.Although RMB internalization process has been started, the hardware----relevantlegal system in China is still in primary stage. Nowadays, China has no systematic,completed, normative, comprehensive state sector acts to establish or regulate theopen conditions, path selections, application procedures and risks control referring tothe RMB internalization. Meanwhile, China also not has a legal system to integratethe related RMB internalization treaties as well as some IMF provisions.On the base of former research of the famous scholars, this article applied therelevant economic model and quantitative data and the first part of this paper,analyzed the current international monetary system, IMF reform as well as thebackground of RMB internationalization. The second part of this paper, analyzed thelegal issues, situations, practices under RMB internalization. The third part of thispaper, made further exploration in the area of profits RMB internalization will bringin as well as the influence on foreign trade, FDI, financial institution innovation. Theforth part of this paper, provided the personal suggestion on how to prevent and guardthe legal risk as RMB internalization.However, this article still has many defects: firstly, limiting observations on thelegal regime related to RMB internalization into financial legal system, especially inthe area of foreign exchange and control and commercial bank system, while seldomreferring to the relevant international treaties, legal provisions and related policies;secondly, limiting analyzing on the aspect into financial area, seldom researchingother areas, such as politics, executives, etc.
Keywords/Search Tags:Reform of International Monetary System, Regulationof the People’s Republic of China on the Administration ofForeign Exchange, Commercial bank Law, Legal Risk
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