Evolution of the International Monetary System and the Internationalization of RMB: A Theoretical Analysis
DOI:
https://doi.org/10.54097/30ahz261Keywords:
Global monetary system; reserve currency; monetary division.Abstract
The foundation of the global economy lies in the international monetary system, influencing worldwide trade, investment, monetary strategies, and financial steadiness. This system has experienced numerous significant transformations, such as the 1971 separation of the dollar from gold, the emergence and growth of the euro, and the slow globalization of currencies in developing markets. Presently, the international monetary system is predominantly dollar-focused and multilateral, grappling with issues like fluctuations in exchange rates and conflicts in monetary policy, resulting in worldwide economic disparities. Post the 2008 global financial crisis, the issues with the international monetary system have gained prominence, prompting a growing global demand for reforms in the existing currency system. The Renminbi's (RMB’s) internationalization stands out as a pivotal event, offering fresh research viewpoints and actionable instances for the development of the international monetary system. This study delves into the development of international currencies and the global spread of RMB.
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