Enhance China's international status and China's influence on the world economy. Dollar, euro, Japanese yen and other currencies can serve as international currencies, which fully embodies the strong economic strength and high international credit status of the United States, the European Union and Japan. 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.
Reduce exchange rate risk and promote the development of international trade and investment in China. The rapid development of foreign trade makes foreign trade enterprises hold a large number of foreign currency creditor's rights and debts. Due to the high risk of currency exposure, exchange rate fluctuations will have a certain impact on the operation of enterprises. After the internationalization of RMB, foreign trade and investment can be denominated and settled in local currency, and the exchange rate risk faced by enterprises will also be reduced, which can further promote the development of China's foreign trade and investment. It will also promote the development of financial markets such as RMB-denominated bonds.
Further promote the development of border trade in China. The cross-border flow of RMB cash in the real economy such as border trade and tourism has alleviated the shortage of settlement means in bilateral exchanges to a certain extent, promoted and expanded bilateral economic and trade exchanges, and accelerated the economic development in border minority areas. In addition, many neighboring countries are rich in natural resources and lack of market supply, which is in sharp contrast to the situation in China. The outflow of RMB is conducive to alleviating the shortage of natural resources and the oversupply of the market in China.
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.
China has a large amount of foreign exchange reserves, which is actually equivalent to providing huge free loans to foreign governments, and at the same time, it has to bear the inflation tax. After the internationalization of RMB, China can not only reduce the wealth loss caused by the use of foreign exchange, but also gain international seigniorage income, which opens up new channels for China to use funds.