The Cross-border Circulation Of RMB In China-DPRK

China is North Korea’s largest trading partner in the China-North Korea border traderegions, the use of RMB promoted the circulation of the RMB in cross-border. With thedevelopment of economy both in China and North Korea in the future, the RMB will playan increasingly important role in bilateral trade settlement and investment valuation.Taking the theory of the RMB in cross-border circulation as the research object, thisarticle illustrates the origin and development of the RMB’s cross-border circulation in theChina-North Korea border trade regions at first. Then the author analyses the motivation,circulation channel and the economic effects of the two countries. Second, this articlelists the problems existing in the circulation of the RMB in cross-border. Again,experience in other countries and regions around, this article summarizes the commonground, and puts forward the differences. Finally the author analyzes the trend ofdevelopment, and puts forward some suggestions on the RMB cross-border circulation.According to our research, the RMB in cross-border circulation plays an importantrole in the development of border trade between the two countries. It is a product tomarket development needs, not the results of arrangement. The experience in othercountries and regions around can provide reference for RMB in the China-North Koreaborder trade regions, but the most important thing is that we should explore the theory ofthe RMB cross-border circulation in North Korea accordance to the actual situation.At present, the RMB of "going out" just at the beginning stages, and it needs toimprove. So some institutional arrangements are proposed to carry on，and we shouldmake effort to promote the economic development in the China-North Korea border traderegions.