The Impact Of RMB Cross - Border Settlement On China 's Balance Of Payments

In order to promote the profit margin of foreign trade enterprises and easeChina’s imbalance of payments, with2008global financial crisis as an opportunity,the Chinese government officially launched cross-border RMB settlement business in2009, as the breakthrough point of RMB internationalization. In this paper, bycollecting and analyzing the data of cross-border RMB settlement from2009to2014,find that cross-border trade RMB settlement booming, but there still existdisequilibrium in regional distribution and payment structure; the amount of directinvestment ’s settlement in RMB has a steady rise, but outward foreign directinvestment ’s settlement in RMB fall behind foreign direct investment ’s settlement inRMB; bilateral currency swap agreements ’ scale expands rapidly, but the cooperativecountries (regions) mainly located in Asia and Europe, the cooperation with Africahas to be strengthened. At the same time, we use the data of China’s internationalbalance of payment from1994to2014, calculated the utilization rate of cross-borderRMB settlement in foreign trade from2011to2014, and contrast to the trend ofChina’s international balance of payments before and after cross-border RMBsettlement launched, to analyze the cross-border RMB settlement ’s effect in balancingChina’s international imbalance of payments. By comparing the trends, we concludedthat cross-border RMB settlement in trade ease the current account surplus, the effectof direct investment ’s settlement in RMB to direct investment of the capital andfinancial account is limited, the cross-border RMB settlement alleviate the rapidgrowth of China’s foreign exchange reserves.