The Analysis Of Inclusion RMB In The Special Drawing Rights (SDR) Currency Basket—From The Political And Economic Perspective

In 2008,the international financial crisis made China realize that,for China,the important strategy of maintaining a sustainable economic development is to reduce the excessive reliance on the US dollar and promote RMB internationalization gradually.The involvement of RMB is a milestone for the process of RMB internationalization.On the one hand,it will promote the process of China ' s financial marketization,and bring the unprecedented chance and challenge for financial reform.On the other hand,it has significant meaning for the revolution of international financial order.In the President' s new year message for 2016,Jinping Xi proposed that RMB Internationalization are achievable and RMB will to be a new currency of SDR basket.Moreover,it can be recognized that the process of admitting RMB into SDR is a microcosm of the process of RMB internalization.China has been benefited from the rapid economic development,and has been reformed the radiation area for demonstration effect.Meanwhile,the involvement of RMB is good for the reform of international monetary system.As for the effects of pushing RMB to the reserve system,IMF Managing Director Christine Lagarde claimed that the involvement of RMB in this basket does accord with China ' s important international power and influence.In this essay,quantitative and qualitative methods will be combined for analysis.And it aims to seek a new breakthrough that based on existing theoretical analysis.Qualitative method will be employed to review the process of the involvement of RMB to SDR currency basket and to indicate the superiority condition of this event.Quantitative method will be mainly utilized for analyzing the impact from two aspects of the event,and the empirical data will be used to indicate the international and domestic influence of RMB's involvement in SDR.In this essay,the impacts of RMB's inclusion in the SDR basket will be analyzed from five aspects in both political and economic view.First,in order to explain the meaning and significance for this event,it will evaluate the situation of SDR that includes the reasons of its formation and the history of SDR currency basket composition currency changes.Second,it will further illustrate the meaning of 'join the basket' in terms of political and economic causes,which combine with Western Country's political needs and domestic policy.Third,it will emphasize the domestic impact of this event objectively in foreign trade exchange,foreign business settlement,foreign investment and capital account opening.Fourth,the international political and economic influence of 'join the basket'will be analyzed,and the effect for the reform of international monetary system will be discussed objectively.Last,according to previous analysis,it will suggest that China should reinforce the in-depth financial system reform,and enrich the diversification of export products.Additionally,it will also advise that China to open offshore market steadily to create the international recycling channel for RMB.