The Research On Legal Issues Of RMB Internationalization

With the continuous improvement of international competitiveness of China andthat of the political and economic status in the world, China further promote theinternationalization of the RMB being the need of economic development at home andabroad. The financial crisis and the European debt crisis has provided an opportunityfor the internationalization of the RMB, so that the Yuan received extensive attentionfrom the international community, furthermore, in recent years, a variety of financialsummit and the forum also began to focus on the issue of reform of the internationalmonetary system. For this reason the author also studied the approach obstacles andlegal issues in RMB internationalization only focused on law point.Since the financialcrisis, with the change of diversification of world trade and reserve system, the globalmonetary system is making fundamental adjustments. In addition, the internationalcredit of RMB has increased dramatically. In2009the Chinese government launcheda relevant system with international purpose, because there is a hugeinternationalization of the RMB gains.Even if China already have many prerequisitesto the implementation of RMB internationalization, there are still some objectiveinsurmountable obstacles on the national and international level, such that domesticRMB is not freely convertible lag-behind the foreign exchange regime and the RMB isnot market-oriented exchange rate formation mechanism, also China’s financialmarkets are not fully mature with weak legal system, etc. We are also facing obstaclesfrom the international geopolitics, the RMB regional financial fragility, culturaldifferences and others.RMB internationalization is objective requirement for China ofbeing engaged in the modernization, the establishment of a socialist market economyand improving openness and promoting the international economic and politicalmulti-polarity.30years of successful experience in Reform and opening up tells usthat any favorable or better than harm to China’s development, we can avoidweaknesses step by step. This article made arrangements for promoting theinternationalization of the RMB from the legal system, economic policy, financialaspects, political countermeasures policy.RMB internationalization is largely theresults of the comprehensive strength and financial markets. RMB internationalizationis a market-oriented process; there out we can ultimately rely on an international market of choice, it is impossible to accelerate but only in a steady and positivemanner.