An Analysis Of Currency Swap In The Progress Of Internationalization Of Renminbi

China’s comprehensive national strength and international influence have greatly ascended since we followed the policy of reform and opening. In the1997Asian financial crisis and the outbreak of the global financial crisis in2008, the Chinese government showed a high sense of responsibility and crisis relief, which not only made the growing confidence of our country, but also enhanced the global recognition of RBM. Now CNY is very popular in the periphery of Asian countries and regions. In some areas RMB even can replace local currency in circulation in the country. In this background, our country put forward the proposition of RMB internationalization road.After the disintegration of Bretton Woods System, the dollar has been in a strong position. The birth of the euro has made some corresponding changes in international monetary pattern, but this didn’t change the status of the U.S. economy and its key role in the world. Because of this, the subprime crisis in the United States in2007gradually evolved into a worldwide financial crisis, which made people call into question the world monetary system in which dollar as the international reserve currency. After the crisis, as the biggest economy entity, the United States didn’t appear with sense of responsibility. And in order to stimulate the economic recovery, the United States adopted a round of quantitative easing monetary policy. The policy could help economic recovery, but for other countries in the world were paying for the mistakes of the United States. All this suggest that in us dollars as the core of the world monetary system has not adapted to today’s world economy development. Now we should contribute to a new financial system that could let the international monetary pattern diversify development. And this also can avoid local impact under single pattern evolution into a global crisis happening again. China as a developing country and the world’s second largest economy, if the CNY become the international currency, that is bound to inject fresh blood to the development of the world monetary system.At the beginning of my work, I consulted some related literatures, finding that RMB internationalization research mainly focused on analyzing our country’s political and economic environment and the objective conditions for RMB internationalization, and through the analysis of domestic and international economic situation to obtain the conclusion of RMB internationalization. Through the perspective of currency swap, this paper wants to get some recommendations and conclusions in how to deepen the internationalization of the RMB. In the research of the currency swap agreement, most scholars are studying the status quo of the swap agreement, the motivations and significance. But fewer scholars are researching the international experience of currency swap agreements. Therefore, this paper bases on consulting literature, analyzing the practical experience of currency swap agreement, and summing up the historical experience. Currency swaps in the research motivation, mostly from the macro environment and the policy objectives in the literature analysis, and this article not only analyze the motives of China’s currency swap agreement from the qualitative analysis, but also some specific influencing factors are analyzed by reasonable model. This is also the innovation of this paper.The following are the main research ideas of this paper. First, the current economic environment is analyzed, and concluding the existence significance of RMB currency swap. And then form a relatively clear literature review that bases on the related literature. Then through the theory of the currency swaps and the internationalization of the RMB, we can get some practice of the foreign currency swaps and some enlightenment of international experience. After that analyzing the currency swap of people’s bank in our country, briefly introduce the present situation of Chinese RMB swap, and giving some evaluation. Meanwhile, I will analyze the reason of the currency swap in our country, and then this paper will use econometrics knowledge to measure the influencing factors of China’s currency swap agreement. Then on the basis of the above, this paper will combine the practice of the currency swap and the internationalization of the RMB in our country, analyzes the:relationship between them. Finally on the basis of the analysis of the previous articles, I will briefly analyze the possible risk of currency swaps in the practice. Finally get the conclusion. At present, we should improve utilization rate of currency swap agreements, financial system reform, vigorously promote the construction of free trade area and strengthen the propaganda, deepening monetary cooperation with other countries, promoting the effect of currency swap in the economic development and in the internationalization of RMB, and to promote the development of the internationalization of RMB.