On The Cross-border International Settlement Of RMB In China-ASEAN Free Trade Area

With the rapid development of China's national economic, the constantly enhance of general strength, the stabilize of RMB exchange rate and the sense of responsibility which Chinese government displayed highly in the financial crisis in American, the RMB's international prestige enhances greatly. RMB's internationalization is an inevitable result of China's economy developmentandshy, and the cross-border settlement of RMB is the initial phase of RMB's internationalization. The establishment of China-ASEAN Free Trade Area will give full play to the function of the cross-border settlement of RMB which provides RMB's internationalization with a better platform. With the expanding scale and scope of the cross-border circulation of RMB, the issues which the cross-border settlement of RMB involves RMB's convertible, RMB's internationalization, foreign exchange control, monetary policy and the economic transactions of ASEAN countries become more important. Accordingly, the scholars are paying attention to the research on the cross-border international settlement of RMB in free trade area.In order to explore the development of cross-border international settlement of RMB, this paper will study the cross-border international settlement of RMB in China-ASEAN Free Trade Area, introduce the theory of internationalization of currencies and summarize the research achievement on the cross-border international settlement of RMB. Then, this paper analyzes systematically the present situation, problems and restraining factors of the cross-border international settlement of RMB in China-ASEAN Free Trade Area. Again, Chapter 5 analyses the effect of the phenomenon by quantitative methods. The last part puts forward the conclusion and proposals from four aspects. We obtain the following conclusion:first, the cross-border settlement of RMB is not only the initial phase and foundation of RMB's internationalization, but also is a component element, which lays the foundation for RMB's internationalization; second, China-ASEAN Free Trade Area provides RMB's internationalization with a better platform. The establishment of China-ASEAN Free Trade Area is badly in need of financial support, which can be provided by the cross-border international settlement of RMB in ASEAN region; third, the effects on China-ASEAN Free Trade Area are both advantages and disadvantages, but the benefit must be more than the costs in the long run. Promting the cross-border international settlement of RMB, we shuld draw on the advantages and avoid disadvantages in order to play a positive influence on China-ASEAN Free Trade Area.