The Research On RMB As The Main Settlement Currency In East Asia

Monetary integration is a hot topic in the international financial circle for a long time, especially after Euro sector being established. In recent years, the East Asian area's economy developed so fast which caused this area to become one of the most important trading areas in the world, but to compare with the major economic development entity such as European Union, its local currency Monetary integration advancement was too slow, so the implementation of Monetary integration was imminent. Because of the East Asian area generally adopts Export-oriented strategy, by the influence of the US, the East Asian chooses US dollar as main settlement currency consider of the long-term achievement for stability and trade development spontaneously, and at the same time use stable US dollar exchange rate as a policy to achieve the economic profitable target. But this kind of exchange rate system is not good to the region which trade is developing day by day; the economical relation in the region is more and more strengthening, the East Asian countries need to strengthen the relation in the exchange rate system. The East Asian multilateral currency cooperation has big difference between countries, the progress is slow. Japan is promoting the Japanese Yen to occupy the East Asian currency cooperation all the time and want to live the leading role, however Japanese Yen to US dollar undulate volatility, and Japanese economy was murkiness, Japanese Yen is not approval by East Asian economy.China was the one of East Asian various countries most important economics in East Asian area and China is economical great nation and the trade great nation that has the growth potential, China already becomes one of the most important trade partner to the East Asian countries. China has the vital role to the Economic prosperity and stability. With China's economy development and the influence, the RMB already became hard currency around the peripheral national and Asian area in trade payment and the settlement. Moreover along with further expands with economical trade, more and more many countries and the area will be willing to accept the RMB. At the same time, because of the various countries deepen the Chinese trade degree, these countries'demand to the RMB will be further, the RMB will become the region currency and choose is inevitably, compare with other international currencies, the RMB has advantage. As local currency the RMB is easier to accept by the East Asian countries. Not difficult to see that the advantage of RMB is bigger and bigger and range is further, RMB as the main settlement currency in East Asia becomes more and more consolidated.