Study On The Exchange Rate Affecting Currency’s Internationalization From The Perspective Of RMB’s Internationalization

China has made remarkable achievements since its reform and opening up which has lasted for more than 30 years. As a result, China’s GDP ranks second in the world.Meanwhile, China has been playing an increasingly important role in international economic cooperation and international political affairs. However, RMB failed to play corresponding international role, and it’s urgent to improve RMB’s international usage and impact. At present, the RMB exchange rate has received much attention from the international community. In line with the international development of the RMB, the arrangements of RMB exchange rate should be thoroughly set. Clarify the role of exchange rates in the international currency and its mechanisms we need to analyze both theoretical and practical perspectives.Theoretical point of view is divided into two parts. At first, we introduce the currency of international connotation, currency internationalization premise, research and internationalization of the RMB exchange rate impact of currency internationalization study. Then, to verify the mechanism of exchange rate’s impacting currency internationalization, we derivate the Mundell-Fleming Model.To gain historical experience, we analyzed three successful cases in currency internationalization:German mark, Japanese yen, Euro currency. Case study clarified currency exchange rate’s contribution to internationalization, which is a firm foundation to develop proper exchange rate policy in line with currency internationalization.Based on the theoretical derivation, we established a currency internationalization empirical model. Currency internationalization index is selected as explained variable, meanwhile GDP, inflation, currency value, exchange rate validity are selected as explanatory factors. Robustness test panel regressions are made. At last, empirical test result gave a good guidance to RMB’s internationalization.