It is conducive to the structural adjustment of China's foreign exchange reserves: if RMB is internationalized, China will use RMB for pricing and settlement in trade, which will reduce the income of foreign exchange reserves such as US dollars to some extent; Imported products can be paid in RMB, so that paper money can be exchanged for physical objects.
Due to the high risk of currency exposure, exchange rate fluctuations will have a certain impact on the operation of enterprises. After RMB internationalization, it will reduce the exchange rate risk and promote the development of China's international trade and investment. The rapid development of foreign trade makes foreign trade enterprises hold a large number of foreign currency creditor's rights and debts. 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.
After currency internationalization, if the real exchange rate of local currency deviates from the nominal exchange rate, or the spot exchange rate and interest rate deviate from the expected exchange rate and interest rate, it will give international investors arbitrage opportunities, stimulate short-term speculative capital flows, and have a certain impact on China's economic and financial stability.