Internationalization of RMB: Benefits, Constraints and Proposals

With the acceleration of global economic integration process and the rapid development of China in the world economy, the issue of RMB internationalization has gradually become the hot topic in the academic research field. The aim seems only too logical; that the second biggest economy in the world wants to promote its currency is perfectly understandable. Whether China wants to play a bigger role in the International Political Economy (IPE), it needs greater autonomy in international monetary affairs, and what better way to achieve this than to use its own currency in international transactions. The principal aims of this article is to provide a brief of how far has China gone on the internationalization of its currency, the RMB, to identify the main benefits, point the main constraints and finally the proposals that this process entails. At present the RMB is not used internationally yet, the RMB internationalization will signify a New Era of rapid growth in China's trade and investment links with the world.