Study Of The Currency Swap Between China And Asean Countries

The currency swaps between governments is widely used in the world,Because it can provide short-term liquidity support, restrain the cross-border spread of financial crisis and promote the development of trade and investment, and so on.It became one of the main tools of central bank to manage liquidity and deal with the financial crisis. After the outbreak of the financial crisis in the United States, the developed countries have adopted bilateral currency swap agreements to provide liquidity support to each other. China is also actively signed bilateral currency swap agreements with ASEAN countries. By the early of2013,1.05trillion yuan bilateral currency swap agreement was signed between the People’s Bank of China and the Central Bank of Malaysia and Thailand and other ASEAN countries or regions. The currency swap between China and ASEAN countries get a different degree of strengthening, the pace of currency swap has accelerated, the scale of currency swap is increasing, the currency swap between China and ASEAN countries has entered a stage of rapid development. But the overall utilization rate of the currency swap is still relatively low for China and ASEAN countries, development is Unbalanced,the function of currency swap can not play well. Expand the currency swap between China and ASEAN countries helps to promote the development of trade and investment between China and ASEAN countries, also lay a solid foundation for regional monetary cooperation, maintain regional financial stability, prevent and resolve financial crisis. In this context, the issue of currency swap between China and the ASEAN countries has a very important significance.This paper is based on the optimal currency area (OCA) and currency search model and money of account choice theory, by combining the necessity and feasibility analysis of currency swap between China and ASEAN countries, analysis the current situation of the currency swap between China and ASEAN countries, analysis the shortcomings and its causes of the currency swap between China and ASEAN countries. Finally, put forward some Suggestions on the the lack of currency swap for China and ASEAN countries. There are some inadequate of the currency swap between China and ASEAN countries, Such as the scale of the currency swap is small, the transparency and efficiency of the currency swap is not high,it lacks the institutional constraints and so on. Put forward some Suggestions from the China-ASEAN and China two angles. In China-ASEAN perspective:First, in the process of currency swap we must adhere some basic principle,such as step-by-step, mutual benefit and win-win,equality and cooperationmust, the trade and currency swap promote each other and so on; Secondly, strengthen and improve the coordination in trade and investment policies, monetary and financial policies, industrial restructuring between China and ASEAN countries; Third, improve the cooperation and exchange mechanism of currency swap between China and ASEAN countries; Finally, speed up the construction of institutionalization of currency swap between China and ASEAN countries。 In China perspective:First of all, it is necessary to strengthen China’s strategic position in the currency swap between China and ASEAN countries; Second, do related work and create favorable conditions for the currency swap; Finally, we should continue to expand the use of RMB in the international settlement, to improve the regionalization and internationalization of the RMB.