Current Situation and Promoting Strategies of Renminbi Internationalization

Renminbi internationalization has become a hot issue in recent years. This paper started with the meanings of renminbi internationalization and analyzed the current situation of renminbi internationalization. Then, restricted factors of the renminbi internationalization were discussed and strategies to promote renminbi internationalization were put forward. The analysis shows that, renminbi internationalization is at its initial stage both on outward circulation and usage and on the internationalization index of currency. Currently, exchange rate and interest rate forming mechanism, the convertibility of renminbi and construction of Shanghai international financial center have all restricted renminbi internationalization. Strategies should be taken to promote renminbi internationalization, including improvement of renminbi exchange rate forming mechanism, deepening of renminbi interest rate forming mechanism, gradually loosening capital account control and speeding the construction of Shanghai international financial center.