In this course, students learn why China wants to internationalize its currency, what is the definition of the internationalization of the RMB, the measures taken by China to internationalize its currency and the limitations it faces in its attempt to internationalize the RMB. The prospects of the internationalization of the RMB will also be discussed. Students would learn about the history of the international monetary system and how it arrived at its current state, which is dominated by the US dollar. The pros and cons to China of internationalizing the RMB would be investigated. Students would be introduced to a theoretical framework to be used to analyze the consequence of the internationalization of RMB on its exchange rate stability and capital mobility. Finally, the students will be asked, “should the internationalization of RMB be an independent goal to be pursued, or just the consequence of the reform of the financial sector?”