The Study On RMB's Internationalization Under The Perspective Of International Monetary System Reform

From the perspective of the history of the reform of the international monetary system,the international monetary system is to adapt to the changes in the world's economic strength and political status of various countries.The current international monetary system is actually a dollar standard,there are many defects and problems,and these defects are not only the root cause of global economic imbalance and frequent financial crises,but also reflect the inequality.At the same time,with the rise of emerging economies represented by China,America's share of the world economy has declined,and the influence has diminished,this shows that the current international monetary system cannot reflect the changes in the political and economic status of countries around the world.The financial crisis caused by the United States sub loan crisis in the global spread rapidly,reflecting the current international monetary system dominated by dollar exist inherent defects and system risk,calls for reform of the international monetary system have become increasingly louder,which provides a good opportunity for the reform of the international monetary system.In 2008,after the outbreak of the financial crisis,countries in the world for the reform of the international monetary system has been widely discussed,and has become an important issue in the G20 Summit.At the same time,the reform of monetary system has also been widely concerned and studied by economists,proposals for reform programs are also emerging,but any sovereign currency as the international reserve currency system,cannot fundamentally solve the Triffin Dilemma,the ultimate goal of the reform is to create a super sovereign currency,has become the consensus.But it requires a very long process.The financial crisis weaken the basis of the dollar hegemony,and the international monetary system from unipolar to diversification has become the inevitable trend of recent reform.Although international monetary system reform has a variety of options,but the dollar,the euro,RMB,the three pillars of the possibility of diversified international monetary pattern.Diversification of the international monetary system reform background provides a good opportunity for the internationalization of the RMB,and the world's second largest economy,the world's largest international trading country,huge foreign exchange reserves and the relatively stable currency,such as the RMB internationalization has a certain conditions.Therefore,it is of great significance to study the reform of the international monetary system and the internationalization of the RMB.The content of this paper is mainly composed of five parts.Firstly,it makes a brief introduction of the basic concepts and decisive factors of internationalization of the currency.Secondly,from three aspects of reserve currency,exchange rate regime and international balance of payments,the main current situation of the international monetary system is analyzed.Reveals that the Jamaica system is not stable,unfair and unbalanced.The major international monetary system reform proposed by the scholars in various countries in order to make up for these deficiencies is summarized,and the feasibility of the reform of the diversification of the international monetary system is explained.Thirdly,the current situation of RMB internationalization is introduced from three aspects of RMB in cross-border settlement,RMB in financial transaction and RMB in global foreign exchange reserve.And from China's economic and trade scale,financial market development,currency stability,capital account liberalization,political stability,military forces and the network externalities on the feasibility of the internationalization of the RMB conditions were analyzed,RMB has with the internationalization of the conditions.Fourthly,based on the historical data of the macro political economy and financial data of the ten major international reserve currency issuing countries,the influencing factors of currency internationalization are empirical analyzed?The result shows that the economic scale of a country,the degree of capital accounts openness and "network externalities" has significantly positively related to the reserve currency of international status.According to the empirical results,the degree of internationalization of the RMB potential is analyzed,results show that the RMB is expected to become the world's three largest currency tied to the dollar,the euro in 2035..Fifthly,according to the empirical results,combined with the present situation of the internationalization of the RMB,the relevant recommendations for further improvement of the international status of the RMB is proposed,including the establishment flexible and relatively stable exchange rate system;the opening capital account gradual orderly under the premise of ensuring the national financial security;the improvement the financial markets breadth,depth and liquidity;the use of "The Belt and Road" strategy,gradually formed the RMB transactions and valuation network.This paper comprehensively analyzes the defects of the Jamaica system,and several schemes of the reform of the international monetary system were compared.In the past,scholars have often neglected the influence of political and military factors on currency internationalization,which makes up for this deficiency.Moreover,this paper combines the RMB internationalization and the reform of the international monetary system,and discusses the influence of the internationalization of RMB on the stability of the currency system.However,in the analysis of the current international monetary system,the reform of the international financial institutions,intergovernmental policy coordination,cross-border financial regulation and other issues have not been able to make a comprehensive and in-depth analysis.In addition,the impact of RMB internationalization on the stability of the international monetary system needs to be further studied.