Research On RMB Internationalization Under the International Monetary System

Abstract

The existing system of international monetary is still highly influenced by the US dollar. As the main settlement currency for international trade and foreign exchange reserve assets of various countries, the US dollar has a profound impact on the global economy. However, with the US treasury bond reaching a historical high and its holders continuously reducing their holdings, many countries began to explore the construction of a non-US dollar settlement system. In this context, although the RMB internationalization process is in its infancy, it has shown great potential. This article adopts the method of literature review to study the current situation and RMB internationalization development path and explores the process and strategies of RMB internationalization under the current international monetary system. The RMB has made a progress in four areas: international settlement, international reserves, valuation functions, and infrastructure. “The belt and road” initiative provide an opportunity to strengthen the construction of the RMB cross-border financial market and to broaden investment channels for countries holding RMB.To further promote the internationalization of the RMB, it is necessary to deepen the binding between the RMB and the energy commodity market.Only after the RMB has completed functions of settlement and investment, do other countries have a sufficient willingness to hold RMB as foreign exchange reserves.