Learning Of Yen Internationalization For RMB Internationalization

The RMB cross-border trade settlement started in July2009, openedthe prelude to the internationalization of the RMB. Within the next threeyears, many policies have been issued，including trade settlement underthe current account and the internal and external direct investment, RQFIIinvestment, and permission of three types of special institutional investors（including foreign monetary authorities） to invest in the inter-bankbond market. Thus it is worthwhile for us to learn how to push forwardthe reform prudently.There are a lot of similarities in the process of development andtrade pattern between China and Japan, so it’s worthy of China to learnfrom Japanese Yen internalization experiences. This paper reviews theprocess of capital account opening and financial liberalization in the60-90’s of Japan, summarizes the characteristics of Japanese capitalaccount opening and financial liberalization and its lesson for China. The paper takes1984, the Ministry of Finance formally proposed theyen internationalization strategy as demarcation,60-70’s gradual openingof the capital account, provides a positive experience for theinternationalization of RMB. On the other hand, after1984, the extremelyanxious of capital account opening and financial liberalization, bring thenegative influence to the real economy, provides negative lesson. Welearned that without stable development of real economics andinternational trade, to liberalize the financial market along with thecurrency internationalization should bring us little merits but huge risk.