A Study On The Spatial Structure Of The Evolution Of RMB Internationalization

The study on the issue of RMB internationalization has been about 30 years in the domestic academic circles,but the Chinese government officially promoted the process of RMB internationalization through cross-border RMB trade settlement only began in July 2009 which means less than 10 years from then to now.Overall,although the time to study on RMB internationalization is not too long,but the research results on the issue are relatively rich both home and abroad,this study field relates to RMB internationalization and currency competition,optimal currency area,RMB internationalization and the national competition,the path of RMB internationalization,RMB internationalization and international monetary system reform and other aspects.The RMB internationalization gradually rose to major national strategy relates to national economic and social development during the process of academic research and government promotion,?steadily promote the RMB internationalization? is explicitly written in China's " 13 th Five-Year plan ".Although the research results of RMB internationalization is relatively rich,but the academic achievements regarding RMB internationalization from the perspective of geography is relatively insufficient.The article uses such theories as "optimal currency area","the geography of money",?the financial geography? etc.as the theory basis,through the map method,regional comprehensive comparative method,political economics method,econometrics and other related methods in the research of the subject.Firstly,study on the historical development of spatial evolution of the three world major internationalized currencies,they are the sterling pound,the US dollar and the euro,each internationalized currency has its special spatial evolution characterics and reasons.After revealing the spatial evolution characteristics of these international currencies,the spatial expansion path and the spatial structure characteristics of RMB internationalization are discussed and analyzed mainly by using the map method from the perspectives which can be explained through map language,including the pilot areas and countries of cross-border RMB trade settlement,the countries and regions which signed bilateral currency swap agreements with China,the countries and regions which adopt RMB as an international reserve currency,the offshore RMB Center Layout,The Belt and Road initiative and the RMB internationalization.The process of RMB internationalization has made certain progresses in recent years.RMB internationalization has a tendency of expanding gradually in geographical spaces,overall its domestic and abroad motivation including China's current total economic volume,the total scale of import and export trade of China,China‘s national strategies,the present status of the money geography of the Great China Area,the actual needs of the reform of the international monetary system,international political and economic multipolarization adjustment,the regional economic integration of Asia and the money geography of Asia etc.These motivations determine that RMB internationalization is a relatively reasonable choice at present.So,how to effectively promote the spatial process of RMB internationalization? Based on the vector autoregressive(VAR)model in econometrics,this paper puts forward some suggestions to further promote the internationalization of RMB.The empirical results show that the strong economy is like a foundation for RMB internationalization,without which it is certainly not possible.But only this foundation is also not enough,RMB internationalization is like a huge building which needs both foundation and bricks etc.That is to say,the huge volume of China‘s GDP provides a strong economic base for RMB internationalization.We need to maintain our status as a big country in import and export trade and further improve the financial market,especially the overseas market of RMB.Continuing to increase the share of total RMB offshore credit in total global credit market is a key and direct economic factor for RMB internationalization.Finally,based on the relevant materials and data of RMB internationalization and the analysis of the relevant spatial structure of RMB when performing its currency functions,this paper tries to propose a core area,diffusion zone and the marginal region of RMB internationalization.The analysis of the related data and materials shows that the core area of RMB internationalization is the geographical area of Hong Kong SAR of China.The diffusion zone is relatively complex.From the perspective of import and export trade,"One Belt and One Road",the RMB functions as an international reserve currency,offshore RMB financial center,the diffusion zone of RMB internationalization can be divided into at least five gradients: South Korea and 10 ASEAN countries are in the 1st gradient;Canada,the euro zone and other eight countries and regions are in the 2nd gradient;Fifteen countries and territories,such as the United Kingdom and the Russian Federation,are in the 3rd gradient;38 countries and regions,such as the United States and Mexico,are in the 4th gradient;49 countries and regions,such as the Eastern Caribbean Monetary Union,are in the 5th gradient of the diffusion zone.The rest of the world except the core area and the diffusion zone are the marginal areas of RMB internationalization.The spatial structure of core area,diffusion zone and marginal zone of RMB internationalization may be helpful for the internationalization of RMB in the future.