Analysis On The Influencing Factors Of The RMB Settlement In Cross-border Trade

Along with a further advancement of economic globalization, the proportion of China’s foreign trade in the world commerce is growing with the growth of China’s economic strength and international standing, and with the escalation of China’s scale of foreign trade. The RMB, at the same time, earned extensive attention as the consequence of a wider influence of China and the stabilization of the value of RMB. However, U.S. dollar and Euro still play the leading roles in the current international monetary system, while the fact that RMB has yet to be a real universal money plays a discrepancy to China’s economic status. Especially, while the crisis of international finance revealed the internal flaw of current monetary system and brought about the louder voice of reform, the practice of cross-border RMB settlement and the acceleration of the RMB internationalization became the objective requirements for the multi-polarization development of international monetary system in this context.In recent years, China’s government took the chances to carry out series of methods by obeying rules of development, showed the image of a responsible great power, and took corresponding responsibilities in the international affairs. Advocate building up regional cooperation systems like economic and trade links, financial services and personnel exchange, enhanced the voice of Chinese enterprises, and enlarged the scale of cross-border RMB settlement. The influence of RMB increases everyday.In the history of China’s international trade, the cross-border RMB settlement was carried out experimentally in July, 2009, and it develops rapidly until now as its scale and range keeps extending and shows huge potential. Nevertheless, there are still respectable problems and challenges in the development of cross-border RMB settlement, such as the relatively small scale of its absolute amount and its unbalanced concentration in Hong Kong. Therefore, the comprehending of the current situation in cross-border RMB settlement, the analysis of its problems and reasons, and the study on the factors that affect cross-border RMB settlement will be quite practical and significant. The purpose of this paper is to provide references for resolving problems in RMB’s cross-border settlement in a macroscopic view, and to boost the process of RMB’s internationalization.The paper elaborates the background, meaning, content, methods, possible creativity and deficiency. It picks and interprets the theory of choosing the international trade currency, the theory of currency’s internationalization, the theory of best-adapted currency zone and other domestic documents about RMB’s cross-border settlement. It recalls the development of RMB’s cross-border settlement, lists its pros and cons, and analyzes its current situation and existing problems. It sets up computation model, demonstrate and compute factors in two different angles. It also proposes the suggestions for next stage, introduces and improve relevant measures, including keep stable while stimulate economic development, expand the bilateral trade, deepen the reformation of RMB’s Exchange Rate Mechanism, and blossom RMB’s offshore market.