| Summary: | An International currency refers to a currency that could be used outside of its issuing country
as a unit of account, a medium of exchange and a store of value. On the one hand, currency
internationalization could stimulate nancial business in domestic banks and seignorage, enhance
the political power and prestige of the issuing country, and benet domestic residents
in trading and investment. On the other hand, a currency, once internationalized, cannot
be completely controlled by the issuing country through any kind of monetary policy, which
signicantly complicates the policy-making process. Four important factors aecting international
use of a currency, including the economic power, level and variability of ination,
uctuation of exchange rate of the issuing country and the status of its nancial market
development. This dissertation aims to build up the concept of a three-stage currency internationalization
process, assess the current status of RMB internationalization and develop
the strategies to enhance levels of RMB internationalization at dierent stages.
Key words: Currency Internationalization, RMB, Internationalization Policy, Internationalization
Strategy
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