Research Of Rmb Internationalization

Since China has implemented the "open door" policy in December 1978,the economy has taken off to become the second largest economy in the world and is expected to overtake US within another decade.After the global financial crisis in 2008,China has taken a series of measures to encourage the use of RMB through Currency Swap Agreement with more than 30 countries,regional currency cooperation,QFII etc.A particular boost for the internationalization of RMB was in December of 2005,when RMB was incorporated in the SDR basket.The RMB cross border use has been decreased a lot since the slowing down of the global economy,thus the internationalization rate of RMB seems to be stalled.While China has overtook the US as the biggest buyer of crude oil at the energy market and the crude futures priced in RMB has been listed at the Shanghai International Energy Center,the question is whether China could pressure those oil exporting countries to accept the settlement in RMB.In reality,according to the mechanism of Petro dollar,if the majority of oil trade is priced in RMB,then other bulk commodities would follow suit.By that time,the internationalization rate of RMB would increase a lot and the flow in of overseas RMB would help the development of domestic financial market and RMB could function both as a unit of account and reserve currency.Both the industrial revolution and the twice World Wars provide rare opportunities for their internationalization and give us valuable lessons about process of currency internationalization.The status of China at the world energy market combined with the belt and road initiative and the roll out of Shanghai Oil futures also provide China a great opportunity to internationalize RMB.Against this backdrop,it is imperative to see whether China could leverage these advantages to help develop petro RMB and then the internationalization of RMB.The first chapter provides introduction.The second chapter looks at the definition and influencing factors of currency internationalization.The third chapter analyzes the cost and benefit of currency internationalization..The fourth chapter analyzes the factors influencing the countries decision to accept the settlement of oil trade in RMB.The last Chapter provides some policy suggestions about the internationalization of RMB and development of petro RMB.The final double paths about RMB internationalization given out at the end of this dissertation are very instrumental about RMB internationalization.