| Summary: | 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.
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