The Study Of RMB Settlement In Cross-border Trade

In2008, the debt crisis caused by Amecirca became more and more serious and finally extended to the whole world. The exchange rate of U.S. dollar, euro, yen and other major international currencies fluctuated greatly. For enterprises in China, exchange rate risk and market risk became more apparent. In April,2009, our government began to develop policies to promote the use of RMB in cross-border settlement, which eased the difficulties our country faced in some extent. Besides, the role of RMB settlement in cross-border trade in promoting the internationalization of our currency has become a hot topic these years. Therefore, the further study of this policy is of significance for solving the problems existed in our economy and the achivement of internationalization of RMB. A comprehensive and deep discussion on the development, the status as well as the problem of RMB settlement in cross-border trade is investigated in this paper. For these problems, this paper also goes through detailed solutions. At the same time, the way that RMB settlement in cross-border trade promotes final internationalization of our currency is also mentioned in this paper.Based on relative thoeries, the necessity of impletation of RMB settlement in the cross-border trade is discussed in this paper firstly, that is solving the exchange rate that enerprises face and lowering the cost under circumtances of financial crisis. In addition, the implementation of RMB settlement in cross-border trade can also ease the pressure which China’s hign foreign exchange reserves bring. Of course, the RMB settlement in cross-border trade is the result of market selection, and China has already possessed the market conditions for its carrying out.Since the introduction of the RMB settlement of cross-border trade, it has been developed rapidly, and the proportion of collection and payment of the import and export is constantly going to equilibrium. Besides, the offshore financial markets has been constantly improved and coutries that are willing to sign the currency swap agreement tend to continue to expand, which promotes the further development of the policy..However, since the implementation of the RMB settlement of cross-border trade, it has been bringing many problems, such as small scale compared with the total number of our foreign trade, regional imbalance, and incomplete of financial services, which of these all blocked the further development of RMB settlement in cross-border trade. As for these problems, we can make use of the advantages of offshore financial markets in HongKong to improve the acceptance of RMB by other countries. Besides, increasing the participation of formal financial institutions is very important. In addition, the government also plays a significant role in promoting the RMB settlement in cross-border trade.The aim of RMB settlement in cross-border trade is not only to solve the current turmoil in the financial landscape, but also to start internationalization of RMB, which means that China has already began to prepare for it. The realization of internationalizaton for RMB can bring a lot of opportunities to China and it is also a necessary stage if we want to develop our country further. Although the internationalizaton of RMB can bring a lot of positive impacts for China, it is not the best time for fully realizing it. And carrying out RMB settlement in cross-border trade is a necessary step in its final internationalization, which is determined by special national conditions of our country.