ABSTRACT
Financial liberalization is the motive for the emergence and the development of offshore markets. The earliest offshore market in history is the US dollar deposits of the former Soviet Union placed in London in case the US government might freeze the assets. RMB internationalization means that the yuan gradually become a third-party use of money, which requires a steady stream of export of yuan in the offshore renminbi market to maintain adequate liquidity. Offshore markets are a parallel with the domestic national monetary system free from government regulation. Capital account liberalization is a process of gradual relaxation of capital controls, allowing residents' and non-residents' holdings of cross-border assets and engaging in cross-border asset transactions, aiming to achieve a freely convertible currency. To become a regional economic core or international currency, a currency involved in the process of cross-cultural cooperation and integration, including recognitions regarding social systems, life philosophy and the market.
