Empirical Analysis of Factors Influencing RMB Internationalization

The rapid development of China economy has aroused our rethinking of the prospect of the world economy, one of the most remarkable subject is the possibility of the Chinese currency RMB springing up to be the international currency. Through the econometric analysis of GDP, balance on current account, price index and fixed deposit rate of China, this paper aims to digging out the inner causes which could influence RMB internationalization. The notable causes that studied by the paper include the total. amount of economical development, inflation rate and real interest rate, etc. This paper considers that some measures can be taken simultaneously which could give full play to the role of both domestic and foreign markets, including implementing step-by-step and progressive convertibility of capital account, gradually improving the operational efficiency of the financial market in the territory, making full use of the advantage of Hong Kong outside of the territory, expanding size of the RMB offshore market and stock market and promoting the process of RMB internationalization.