With the expansion of RMB in trade settlement, the construction of offshore local currency market has begun to take shape. At present, the initial conditions for RMB internationalization are relatively mature, and the realization of RMB capital account convertibility has entered a sprint stage.

There are three main challenges in promoting the internationalization of RMB: First, China is still an export-oriented country with high dependence on foreign trade and is vulnerable to fluctuations in the international market. To promote the internationalization of RMB, we must expand domestic demand in time and realize the optimization and upgrading of industrial structure. Second, the domestic financial system is relatively fragile. Once the financial system is liberalized, the amount of capital transactions triggered by a large number of virtual financial derivatives will far exceed the international trade in goods. If the speculation of international hot money cannot be well controlled, it will bring great harm to the financial system. In addition, with the gradual liberalization of China's capital account, if we want to maintain the independence of monetary policy, we must reduce unnecessary foreign exchange intervention. With the internationalization of RMB, exchange rate fluctuation will be a normal state.