Some views on RMB internationalization should first understand the meaning of RMB internationalization, including the following three points: first, RMB cash enjoys a certain degree of circulation abroad; Second, and most importantly, financial products denominated in RMB have become investment tools of major international financial institutions, including the central bank. For this reason, the scale of the financial market denominated in RMB is constantly expanding. Third, it is necessary to realize a certain proportion of transactions settled in RMB in international trade. This is a general standard to measure the internationalization of currency, including RMB, of which the latter two points are the most important. For China, with the continuous improvement of economic level, the country's comprehensive strength is getting stronger and stronger, and its international status is increasing day by day. In order to seek greater development and opportunities, RMB internationalization is imperative! So, what are the advantages and disadvantages of RMB internationalization for China? 1. Analysis of the main positive impact of RMB internationalization on China: 1. Consolidate China's status as a political power. The enhancement of national economic strength and its influence on global economic development will inevitably strengthen China's status as a world power. By participating in more international affairs and multilateral consultations, China will eventually achieve a peaceful rise. Why can the dollar and euro become international currencies? Isn't it because the United States and the European Union have strong economic strength and high international credit status? After the internationalization of RMB, China will have the right to issue and adjust a world currency, and its influence and voice in global economic activities will also increase. At the same time, RMB occupies a place in the international monetary system, which can change the current dominant position and reduce the adverse impact of the international monetary system on China. 2. It will help China to change its original economic growth model. Its theoretical basis is that RMB free convertibility and floating exchange rate will reduce net exports, foreign exchange holdings and currency, thus reducing the inflation level in China, improving the real purchasing power of China residents, and further increasing the consumption demand in China. The essence of reducing China's net exports is to reduce subsidies to importing countries, increase the income of domestic residents and realize "storing wealth for the people"! 3. Earn international seigniorage income. After the internationalization of RMB, the most direct and largest income is the international seigniorage income. Seigniorage refers to the difference between the denomination of paper money issued by the issuer and the cost of paper money issued by virtue of the privilege of issuing currency. Hand out paper money at home, take it from home and use it at home. Issuing world currency is equivalent to collecting seigniorage from other countries, which is basically cost-free. 4. Relieve the pressure on China to accumulate foreign exchange reserves, reduce the risk of shrinking reserve assets and reduce its dependence on big economies (mainly the United States). At present, China's foreign exchange reserves are mostly held in the form of US Treasury bonds, which makes China and the United States in a delicate game state, especially in this global financial crisis. If the US economy continues to slump, China's foreign exchange reserves will shrink at any time, but China can't find other better investments to choose from in the short term, or holding US dollar bonds is the best choice at present; In addition, even if China has other better investment options, it dare not rashly reduce its holdings of US dollar foreign exchange reserve assets, because China's large-scale reduction of US dollar bonds will further worsen the US economy, which will inevitably adversely affect China's exports and further worsen China's economy. Therefore, to some extent, China depends on the recovery of the American economy. Second, the main negative impact of RMB internationalization on China: 1. It has a certain impact on China's economic and financial stability. The internationalization of RMB has closely linked China's domestic economy with the world economy, and any trouble in the international financial market will have a certain impact on China's economy and finance. Especially after currency internationalization, if the real exchange rate of local currency deviates from the nominal exchange rate, or the spot exchange rate and interest rate deviate from the expected exchange rate and interest rate, it will give international investors an arbitrage opportunity, stimulate the flow of short-term speculative capital, and may produce a "herd effect" like the Asian financial crisis 1997, which will have a certain impact on China's economic and financial stability. 2. Increase the difficulty of macro-control. After the internationalization of RMB, a certain amount of RMB will circulate in the international financial market, and its international flow may weaken the central bank's ability to control domestic RMB and affect the implementation of domestic macro-control policies. For example, when domestic monetary policy is tightened to control inflation and raise interest rates, the RMB circulating around the world will take the opportunity to increase the supply of RMB, thus weakening the implementation effect of monetary policy. 3. Internationalization of RMB may make the operation of China's monetary policy encounter certain difficulties. In the absence of regionalization and internationalization of RMB, no matter how much base money the central bank puts in, it only circulates in China. However, after the regionalization and internationalization of RMB, a considerable part of it circulates abroad. Although this part of the money flowing out of the country has no impact on domestic prices for the time being, its accurate data is difficult to grasp and its increase and decrease are difficult to be controlled by the monetary authorities, which will inevitably increase the difficulty for the central bank to regulate the money supply. Once the conditions are ripe, these overseas RMB may flood back in large quantities, thus affecting the domestic currency circulation and currency stability. In addition, in the case of RMB internationalization, due to the cancellation of restrictions on capital inflow and outflow, domestic financial markets and international financial markets are integrated, and capital can freely enter and leave China, so the effectiveness of China's monetary policy will also be weakened. To sum up, RMB internationalization has advantages and disadvantages. But in the long run, the advantages of RMB internationalization outweigh the disadvantages. Therefore, how to manage the risks brought by internationalization to China's economy and make full use of the benefits brought by internationalization is an arduous task before us. Strengthening the construction of the financial system and actively and steadily promoting the internationalization of RMB are the long-term tasks of China's financial reform and opening up in the future.