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spectively. Furthermore, chapter 6 will focus on stating what I expect to find meaning answers so far to questions and conclusion will be given after writing previous chapters. Finally, a working plan as well as a timeline strategy will be offered during chapter 7.    
 
Chapter 1: Introduction
Like most developing countries, China has also adopted a multiple exchange mechanism after launching the market-oriented economic system reform. Since 1979, a policy regarding the opening to the outside world published officially. It was also at that time that China started the progress of Renminbi (China’s home currency, also referred as RMB)’s full convertibility. Actually “full convertibility of Renminbi means that the holders of RMB can exchange owned RMB to another currency at a market rate with any purpose without restrictions at anytime. Introduction of currency convertibility is one of the most crucial part of a country’s economic reforms, especially for those formerly centrally planned economies which is an economic system in which the state or workers' councils manage the economy (The New Palgrave: A Dictionary of Economics, v. 3, pp. 879-80.). In such economies the state or government controls all major sectors of the economy and formulates all decisions about the use of resources and the distribution of output (Construction Economics 2004, p. 288).

To talk about one currency’s convertibility often implies how open an economic situation is as the concept of convertibility of one currency covers the unrestricted use of a country’s currency for international currencies allowing it to be exchanged for foreign currency to make a transaction.

International transaction can be interpreted by a balance of payments which can be break into various components. Those that receive most attention are the current account and the financial account (sometimes referred to the capital account) (International Financial Management. Jeff Madura, Roland Fox,p.38).Therefore the liberalization of current account and capital account are two stages which are concentrated on for the whole course of RMB’s full convertibility. The first level of adopting liberalization 本论文由英语论文网www.51lunwen.org整理提供under the current account has been established in China since 1996. The second is adopting capital account liberalization, which is currently going on.

Furthermore, adapting the convertibility of a currency will involve economic coordination in a very broad range of area, including macro-economy balances, and the level and flexibility of price, interest rate and exchange rate (HKIMR Working Paper, April 2002). Thus achieving full convertibility can bring China a lot of opportunity and benefit such as the encouragement of foreign investment, increasing the export etc. On the other hand, someone also argues that the full convertibility will affect the exchange rate therefore having an impact on the economy.

However, China’s currency has been the world’s attention these years. Personally I am quite interested in those hot topics (such as the appreciation of RMB, can RMB take over US dollar’s position etc.) which based on my country’s currency so I pick up one of them (the full convertibility of RMB) through the brainstorm.

Moreover this paper will review the historical process of RMB’s convertibility during the past as well as an analysis about the pros and cons of this subject. Then we will focus on the impac本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。