New Ideas for RMB Internationalization under the Belt and Road Initiative

President Xi Jinping put forward that, "China will further push the open economy to a higher level by enlarging its scale, expanding its area, and deepening its degree." This proposal provides new perspectives for RMB internationalization. The new path of RMB internationalization shall be achieved under the Belt and Road Initiative and be a new option that is di erent from the "Three-Stage Theory" and regional monetary cooperation. RMB internationalization can only be realized through a government-driven mode with Chinese characteristics which shows the fundamental di erence from the internationalization of other currencies such as the US Dollar, Euro and Japanese Yen. The Chinese government can realize the strategic objective of RMB internationalization through improving national governance, applying policies and tools for macroeconomic regulation, and implementing the Belt and Road Initiative, as well as the operation of its nancial industry, the Silk Road Fund(SRF), and that of regional banks like the Asian Infrastructure Investment Bank(AIIB) and the BRICS New Development Bank(NDB). RMB internationalization is an important objective of China’s political and economic development. Efforts must be made to steadily promote market-oriented reform of the RMB exchange rate and its forming mechanism, and reform of capital account convertibility so that RMB can become the leading global reserve currency. Meanwhile, China will also undertake more responsibilities as a major power for stable development of the international economy and nance.