In 1961, Trriffin first analyzed the two responsibilities of the U.S. dollar under the Bretton Woods system: ensuring that the U.S. dollar is convertible into gold at the official price, maintaining countries' confidence in the U.S. dollar, and providing solvency (i.e., the U.S. dollar).

This is the famous "Trriffin problem".

With the uneven development of capitalism, the balance of economic power among major capitalist countries has repeatedly changed, and the inherent contradictions and flaws of the U.S. dollar-centered international monetary system have become increasingly exposed.

In December 1971, marked by the Smithsonian Agreement, the US dollar devalued against gold, and the system of linking the US dollar to gold existed in name only.

The collapse of the Bretton Woods system showed that a single reserve currency system based on gold was unstable.

A single reserve currency country needs to balance between maintaining domestic equilibrium and providing liquidity to the world. The result of its choice will bring about fluctuations in the world economy.

The US dollar dominates the international monetary system, but the world lacks binding force on the issuance of international reserve currencies.

Therefore, an important part of managing today's global imbalances under the G20 framework is to reform the international monetary system.

Nowadays, many countries have begun to promote local currency swaps and strengthen regional financial and monetary cooperation, hoping to "de-dollarize" and reduce over-reliance on the U.S. dollar.

RMB internationalization can help alleviate the shortcomings of the current international monetary system.

As a product of the Bretton Woods system, the international monetary system has some inherent shortcomings and can no longer reflect the new characteristics of world economic development. Emerging economies lack the necessary voice in it.

With the emergence of the sovereign debt crisis in the Eurozone, the recession of the US economy, the long-term stagnation of the Japanese economy, and the turbulence of the international financial market, the call for reform of the international monetary system has become increasingly louder.

The current international monetary system needs to undergo reasonable changes, but it is difficult for vested interests such as the United States to take a proactive stance or make appropriate concessions. The reform of the international monetary system must be promoted through the internationalization of the RMB.

The internationalization of the RMB will be conducive to the multi-polar development of the world economy and the diversification of international currencies.

To reform the current international monetary system and form a substantial restriction on the US dollar, it is unrealistic to return to the gold standard or the gold exchange standard. The only way is through the diversification of international currencies and the external constraints of competition between international currencies.

Checks and balances the dollar.

In the process of the internationalization of the RMB, it will also lead to the emergence of a large number of regional and international currencies, which is beneficial to the world economy, especially the economic development of developing countries.

This is especially true in the current international monetary system that is dominated by floating exchange rates and lacks necessary international binding force.

In the process of RMB internationalization, China can also achieve various effective monetary and financial cooperation with Asian countries, seek to create a regional exchange rate stabilization mechanism and regional currency, and accumulate experience for the emergence of the Asian dollar in the future.

This is a win-win strategy for the economic development of Asia and the world. On the one hand, it is conducive to promoting the facilitation of China's trade and investment, and it is also conducive to promoting economic exchanges between China and neighboring countries or other countries on a larger scale.

; On the other hand, under the conditions of RMB appreciation or stability, it is cost-effective for them to accept RMB, which is conducive to the preservation and appreciation of assets. These countries can reserve RMB as their own foreign exchange assets. For these countries, under the conditions of depreciation of the US dollar,

, the reserve currency has another option.

However, the internationalization of the RMB will create direct competition with existing international currencies, especially the US dollar, which the US government does not want to see.

Therefore, the internationalization of the RMB will be a long process from the beginning to the full realization of internationalization. There are probably three reasons for this: First, the internationalization of the RMB is mainly driven by the market and cannot be driven mainly by the government.

; Second, the use of international currency has inertia; Third, international currency will bring a lot of benefits to the country that issues the currency. The most important benefit is seigniorage revenue. At present, the issuing country of international currency will definitely not automatically give up its currency.

Various benefits of internationalization.

Although the internationalization of the RMB may have some negative impact on the economies of developed Western countries for a period of time, the "World Economic Outlook" published by the International Monetary Fund points out that China's overall trade share is still very low and will not lead to widespread decline in trading partners.

deflation.

The long-term economic depression of the United States and Japan has its deep-seated reasons, which stem from the adjustment after the high-tech industry bubble burst. Even if the RMB is not internationalized, it cannot change the phenomenon of industrial hollowing out.

On the contrary, if the RMB can become one of the major international currencies and, together with other reserve currencies such as the euro, compete with the US dollar to a certain extent, it will help to eliminate the imbalance of the world economy from the institutional level, which will be detrimental to the United States, Japan and other countries themselves.

Economic development is also of great benefit.

The internationalization of the RMB facilitates international settlement and will promote the development of international trade.

The internationalized RMB will have the following characteristics: sovereignty, credit, availability, stability, convenience, and acceptance.

RMB holders can use it to purchase a variety of competitive goods produced in China.

In September 2010, Malaysia stated that it would purchase RMB as foreign exchange reserves, which was a major step forward in the internationalization of RMB.

In addition, holding RMB assets can also reduce exchange rate risks.