Abstract:Based on the perspective of the international monetary cycle, we analyze the interactive relations among the internationalization of RMB, exchange rate fluctuation and foreign direct investment in RMB. Results show that the increasing in degree of RMB internationalization will exert pressure on the appreciation of RMB, which in turn promotes the internationalization of RMB; the internationalization of RMB and the foreign direct investment in RMB are of the mutual promotion; RMB devaluation will lead to increasing amount of the foreign direct investment in RMB. The impact of the foreign direct investment in RMB on the RMB exchange rate is not significant.