The Currency Way Of Cross-border Trade Settlement And The Implementation Of Monetary Policy

Our country started the RMB settlement of cross-border trade in July2009indicating that RMB internationalization entered a new stage.The currency way of cross-border trade settlement had been the focus research of scholars at home and abroad. But as the internationalization of the RMB enters a new stage, the implementation effect of monetary policy will be affected. In recent years, many scholars have conducted the currency way of cross-border trade settlement research,and the implementation effect of monetary policy were studied, too.However, how the currency way of cross-border trade settlement and the implementation effect of monetary policy affected each other, very few scholars had studied them, and it is the innovation of this paper.The article is divided into five parts. The first part is the introduction,and it mainly study the background and significance of this paper, the theoretical and practical significance of the study, and innovation of the research. The second part the author sorts the domestic and foreign research literature. The third part is the theoretical part. The fourth part is the empirical part.The author has established two VAR (5) model, the long-term cointegration, Granger causality test, impulse response analysis and variance decomposition, to illustrate the relationship between the currency way of cross-border trade settlement and the implementation effect of monetary policy. The fifth part is to give policy advice to the exchange rate policy and monetary policy by the results of empirical analysis.including accelerating the construction of the exchange rate policy; and increasing the volume of broad money supply in China properly. The government should pay attention to the high domestic inflation rate while promote cross-border trade RMB settlement process;and improve the financial services of RMB settlement.