Study On The Effect Of Cross-border RMB Settlement Of International Payments

Since the financial crisis in2008, US dollar, euro, part of the international trade settlement currency exchange rate fluctuations, faced China and neighboring countries and regions of the enterprises in the use of third party trade settlement currency exchange rate risks will increase. The currency of choice the Chinese government timely launch of the cross‐border trade RMB settlement business for import and export enterprises more than a stable currency, is also a more convenient. In this paper, the situation and data of this business development for five years, from the international balance of payments current theory, summarizes the effects of cross‐border RMB business for all items of China’s international balance of payments.This paper is divided into five sections:The first chapter is the introduction part, mainly introduces the research background and literature review. This paper is based on the cross‐border RMB settlement of this new settlement business as the research foundation, attempts from this new thing of what its impact on China’s international balance of payments.The second chapter is on the cross‐border RMB development in China are reviewed in this paper. Mainly introduced from the development status in recent years the business of domestic development and various financial institutions.The third chapter is to explore the effects of cross‐border RMB business on China’s international balance of payments each project. Including the impact on China’s international balance of payments, the current account to the capital and financial account and the impact on China’s foreign exchange reserves. Official data the data are from the people’s Bank of China and the State Administration of foreign exchange announced.The fourth chapter mainly studies the significance and policy suggestions for cross‐border RMB settlement development to China’s international balance of payments. Including two‐way direct investments are denominated in RMB can improve the controllability of RMB and foreign exchange reserves, the gradual internationalization can enhance the initiative, adjust the balance of international payments to widen the RMB two‐way flow channels to promote China’s international balance of payments equilibrium.The last chapter is a conclusion and prospect, mainly put forward field and development suggestion of cross‐border RMB settlement future expansion, including personal cross‐border RMB business, continue to promote the RMB foreign output, capital account convertibility.