Export Trade Structure And Currency Internationalization

The outbreak of2008global financial crisis exposed shortcomings of the currentinternational dollar-dominated monetary system, but on the other hand, as China’srapid economic growing and the development of comprehensive national strength, theYuan has begun to circulate around home and abroad, RMB internationalization willbe attracting more and more attention. In order to promote further internationalizationof RMB, we should learn more about historical experience, through the analysis offactors that influences several major countries’ currency internationalization, we mayfind an angle to promote the internationalization of the RMB and made constructivecomments, this article mainly discussed the export trade structure, in this way wecould better understand how to propel the RMB internationalization.This paper uses both theoretical and empirical analysis method to discusswhether the export trade structure will impact on currency internationalization, if it istrue, then how it influence currency internationalization. In the theoretical analysis,we get export structure of a country by choosing Denomination Currency, the largerdiscrepancy in amount of the products, the higher status we may have, and it will beeasier to use our own currencies for trade, in this way we could promote propel theRMB internationalization. We also analyzed the structure, other possible factorswhich may impact the internationalization except for the trade’s factor, including thesize of a country’s real economy, currency stability and the degree of financialdeepening.Then we use panel data model to analysis the role international trade structureplay in the internationalization by empirical analysis which bases on theory, as weexpected, the results show that the larger a country’s proportion of exports ofhigh-tech products, the more likely country currency to become an internationalreserve currency, the easier it is to achieve the country’s international currency, thus,optimize export structure has a positive impact on international currency. Meanwhile,the empirical analysis of a country’s size, the degree of financial deepening and finance entities are identical with theoretical expectations, which have positive impacton the currency internationalization, and empirical results show that the degree ofexchange rate fluctuations and currency exchange rate fluctuations do notsignificantly influence the internationalization.Finally, on the basis of theoretical analysis and empirical analysis, we havedescribed the current situation of China’s trade structure and the current status ofinternationalization of the RMB, and based on my conclusions in terms of optimizingtrade structure of RMB internationalization put forward their own suggestions toimprove our technical level, to develop high-tech industries.