RMB Internationalization Cost And Benefit Analysis

The RMB internationalization plays an important role in the international monetary system reform,and influence the development of Chinese financial and economic system,in 2008 the outbreak of the international financial crisis is a watershed in the internationalisation of the renminbi,the internationalisation of the RMB finally from behind the scenes to the front.While the RMB internationalization is a double-edged sword,which can bring costs as well as benefits.Benefits include considerable seigniorage revenues and foreign reserve assets net investment profit,to promote the domestic financial sector reform and opening up,promote the potential ability of international financing and reduce their currency mismatch risk,etc;the costs include the triffin dilemma,the loss of independence of domestic monetary policy,the risk cost of exchange rate,the regulatory cost and the risk of currency substitution.Understanding the costs and benefits of the RMB internationalization as a whole and analyzing the costs and benefits of the RMB internationalization will effectively control the trend of the RMB internationalization in the process of promotion.At present,what is the level of RMB internationalization and what kind of costs and benefits will be generated in the internationalization of RMB are the main research direction of this paper.Firstly,the research literature on the costs and benefits of the RMB internationalization is sorted out and analyzed in this paper,the main currencies and development status of the international monetary system are analyzed,the degree and development prospect of the RMB internationalization are further clarified.Secondly,the thesis mainly analyzes the costs and benefits of the RMB internationalization,the qualitative analysis was carried out on the costs,while the quantitative analysis was carried out on the benefits.That is to say,gaugeable international seigniorage revenues is used to predict future international seigniorage revenues and the net foreign reserve asset investment net income.Finally,based on the analysis of the full text and the reality of our country,this paper will make some conclusions on the degree,costs and benefits of the RMB internationalization and the path of RMB internationalization.Besides,based on the measurement of the RMB internationalization costs and benefits,this paper also puts forward some necessary suggestions on how to improve benefits and reduce costs.