STATUS QUO OF RMB INTERNATIONALIZATION AND INTERNATIONAL EXPERIENCES

Author: Dr Xin Kai

ABSTRACT

With the rise of China’s economic scale, the internationalization of the chinese currency, the RMB has made significant progress and has become a major global payment and reserve currency. However, there remains a considerable gap compared to China’s economic and trade scale. This paper systematically reviews the historical process and current status of RMB internationalization, pointing out deficiencies in cross-border payments, foreign exchange reserves, and regional influence. On this basis, it draws on the experiences and lessons of the internationalization of the Japanese yen and the Euro. The yen’s internationalization offers the following insights: relying on international trade and investment to increase the share of settlement, steadily advancing financial liberalization and capital account convertibility, clarifying strategic objectives, and maintaining currency stability. The euro’s internationalization highlights the importance of robust institutional development and top-level design, but Asia lacks the practical foundation for regional monetary integration. The study argues that RMB internationalization should adhere to the policy principle of “focus on the domestic,” be fundamentally rooted in serving the real economy, and gradually enhance its international status by leveraging the Belt and Road construction and regional cooperation mechanisms.

Keywords: RMB internationalization; Euro; Japanese yen

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