Analysis on the Relationship Between the RMB Internationalization and the Capital Account Openness

Abstract

The benign interaction between the Renminbi(RMB) internationalization and the capital account openness is conducive to steadily push forward the RMB internationalization. The paper studies the relationship between the RMB Internationalization and the capital account openness from three aspects of the RMB free exchange, liberalization of capital account transactions and RMB import & export. The conclusions are as follows: the RMB free exchange is not the premise of RMB internationalization, and RMB internationalization doesn't need to request RMB to be fully convertible currency; the RMB internationalization can be promoted without the liberalization of capital account transactions; the gradual liberalization policy should be taken for the number and channel of the RMB import & export.