The China''s Economic Development and Internationalization of RMB

• Main Authors: Chang, Sheng-Feng, 張勝峰
• Other Authors: Hwang, Jen-Te
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/08085982237150859201

碩士 === 嶺東技術學院 === 財務金融研究所 === 92 === ABSTRACT China’s explosive growth during the twenty years following the onset of economic reform in the late 1970s is a major event in global history. When comparing with the United States, Japan, Germany, and other countries, the data relative to economic size suggest that China is the significant economy in the world, thus fulfilling one of the key criteria for Renminbi to be chosen as international money. Economic integration is expected to grow further through the proposed free trade area of China and the ten member countries of ASEAN. In fact, China enjoys already important and rapidly growing trade and investment relations with its Asian neighbors. It is rather likely that renminbi will assume a dominant role for the process of Asian monetary integration. In 1996, China accepted Article VIII of the IMF’s Articles of Agreement to establish so-called current account convertibility. Nevertheless, the liberalization of the financial account is more complex than that of the current account, as it is generally require the healthiness of financial markets and the soundness of exchange rate system. Currently, the non-performing loans held by the big four banks is a main impediment for China’s financial account convertibility. Furthermore, how to solve the problems, which is resulted from renminbi appreciation, is another obstacle. For China, the goal of full convertibility is probably still quite far in the future.