Research On The Internationalization Of RMB Reseveve Function

With the rapid rise of the economy,China has also begun to seek international currency status that matches its national strength under international rules.Promoting the internationalization of the people's reserve function is an inevitable requirement of domestic economic and financial development.On the basis of the previous research theory,combined with the current situation and environment of the RMB reserve function internationalization,this paper summarizes the main influencing factors of the international reserve currency through empirical analysis,and on this basis,combines the course of internationalization of the three major reserve currencies of the United States dollar,the Japanese yen and the euro,Draw lessons from the historical experience of the three major currencies to provide the thinking direction for the RMB to become an international reserve currency,and then put forward countermeasures.Historical experience shows that a country's strong economic strength,extensive foreign trade,developed financial markets and historical opportunities are essential conditions for the currency to become the international core reserve currency,and China still needs to continue to develop financial markets and wait for historical opportunities.After analyzing the present situation of the size,scope and process of the official foreign exchange reserve of RMB abroad,this paper draws the problem of the low degree of RMB reserve and the uneven distribution of RMB reserve range,on the basis of economy and trade scale,currency value,political and military situation,external opportunities,Financial market development degree,The advantages and disadvantages of RMB reserve function are analyzed in six aspects of monetary inertia.Through the empirical evidence,we find that monetary inertia,economic scale,currency stability are important factors affecting the international reserve currency,of which the monetary inertia has the greatest impact on the international reserve currency,which will be the biggest challenge to the RMB.Finally,by combing the course of the internationalization of the first three reserve currencies of the United States dollar,the Japanese yen and the euro,it is found that the internationalization of RMB reserve function should be backed by the strong economic and trade of the country,supported by financial reform,with market choice,government-led as the center,through the implementation of economic and trade,financial development and international There are hierarchical,directional and targeted promotion of RMB to play the function of offshore reserve.