This thesis is an initial attempt to investigate the relationship between the currencyinternationalization process and the financial markets development by driving a key study ofthe Chinese renminbi.China started to consider alternative policy instead of the exporting ledpolice after the Asian financial crisis 1997 though it didnt affect the Chinese economy but thegovernment moved towards the new policy of renminbi internationalization in 2007 with theCreation of Dim Sum bonds and offshore renminbi bond market.In this paper, there is abreakdown of three-folds First, the liberalization of the capital market from strict controlsfollowing with chinas opening up to promote the renminbi as international currency.Second,framework that analyzes the implications of renminbi internationalization; this part exploitsdata of a recent period to interpret three main issues: the role of boosting the financial marketsliquidity in accelerating the Renminbi internationalization process using SOL regressionmodel in line with bivariate correlation to state the positive relation between the two variables.Finally, given its size and economic clout, China adopted a unique approach to the renminbisrole in the global monetary system "capital account liberalization with Chinesecharacteristics." As with virtually all other major reforms, China has used unconventionalmeasures to promote the ascendance of the renminbi in the international economy.Structuralchanges in the world economy and the rise of the rest, reinforced during the financial crisis,are likely to prompt the rise of new reserve currencies.The renminbis rise will continue evenif Chinas authorities do not implement market-driven reforms of financial and monetarypolicy but the Chinese government has to consider the renminbi store of value since therecently the private sector demanded renminbi denominated assets with high hope of ever-appreciating trend but the renminbi entered a depreciation trend since 2016, the demandseemed to be getting lower for renminbi as apart of foreign reserves.