A Study On The Pilot Financial Reform In Shanghai FTZ And The Process In The RMB Internationalization

The internationalization of Renminbi meets the requirement of China’s full participationin the global economic activities. And to push it forward steadily is the demand of the era. Inthe recent years, China has taken a number of measures to strongly promote the RMBinternationalization, which has been improved greatly. However, some problems still exist inthe process, impeding the internationalization. In2013, China (Shanghai) Pilot Free TradeZone (Shanghai FTZ for short) was set up, which opened up a new opportunity and addednew power to the internationalization of RMB. It is aimed to speed up the process of RMBinternationalization to deeply research the significance and functions of FTZ.On the basis of the fundamental theory of currency internationalization, the essay firstintroduces the process of RMB internationalization and systematically analyzes the presentsituation and the existing problems of RMB internationalization. Then it illustrates thepositive significance of establishing the FTZ and its financial innovation towards theinternationalization. At the same time, the paper analyzes the existed risks and indicates thatwe should carefully open up the market of capital project conversion and the deposit interestrate. At last, the study puts forward some strategies and suggestions for the working of FTZ toenhance RMB internationalization. The suggestions are as follows: to strengthen theconstruction of Shanghai as the offshore RMB market, to put the FTZ policies into practice soas to positively promote the RMB internationalization, to summarize the FTZ experiencesconstantly, to deepen the reform and financial innovation, and to conduct an effectivelyprevention from financial risks.