ABSTRACT
Since 2010, the RMB has shown a significant range of appreciation, while at the same time the index of RMB internationalization has increased rapidly. Therefore, some local and overseas scholars think that a continuous expected rate of appreciation is the requirement for RMB internationalization, and thus they criticize the stable RMB exchange rate. In promoting the internationalization of the RMB, is it a must for the RMB to be a one-way, continuous appreciation? In other words, without market expectation of RMB appreciation, will its internationalization process simply stop or even go backwards? Before answering this question, we need to conduct a comprehensive assessment of RMB internationalization, the depreciation of the USD, and the sustained pressure of RMB appreciation, as well as analyzing its pros and cons. The central bank needs to carefully weigh the relationship between RMB appreciation, the internationalization of the RMB, and financial security.
