The Study On Effects Of RMB Cross-Border Settlement On RMB Internationalization

By the global financial crisis which emanated from subprime crisis and the European debt crisis, the existing international monetary system which focuses on the Dollar is in need of an overhaul. States seek to the cooperation of regional economic and financial in order to achieve national macroeconomic stability, and also begin to initiative and enhance the international status of other major currencies to promote the diversification of the international monetary system. Meanwhile, with the growing economy and improving status of China in the world, RMB internationalization has become the focus of attention both in China and the world. The promoting of RMB cross-border settlement is an important step in the development of RMB internationalization, and the effects will have a profound impact on the process of RMB internationalization in the future.This paper systematically analyzes selections of trade settlement currency, currency internationalization, RMB internationalization and other aspects of theoretical research. On the bases, the paper studies on that RMB cross-border settlement effects RMB internationalization, including direct effects and indirect effects. The paper analyzes the external pressure and internal motivation of RMB cross-border settlement, and points out that RMB cross-border settlement is the special way of RMB internationalization. From the amount, business structure and geographic scope of currency swaps cooperation of RMB cross-border settlement, the paper explores the direct effects of RMB cross-border settlement on the RMB internationalization. On the basis of analyzing the adverse effects of capital controls, the paper points out that the RMB cross-border settlement will lead to the gradual opening of the capital account. From the stock market, bond market and the credit markets, the paper analyzes the resulting effects of RMB cross-border settlement on the RMB internationalization. Finally, the paper points out some problems which influences on the development of RMB cross-border settlement, and also provides the policy recommendations.