The Potential Analysis Of The RMB As An Anchor Currency In East Asia

The impact of the Asian financial crisis, East Asian countries and regions makes monetary cooperation to realize the importance of actively explore the mode of monetary cooperation in East Asia, the successful issuance of the European Monetary Union and the euro set up provides a good example, but due to the lack of the East Asian region such as the German mark as a strong currency as a regional anchor currency, resulting in the realization of the East Asian monetary Union needs a process. Since the reform and opening up, China’s rapid economic development, the renminbi to maintain high stability and the Chinese government demonstrated in the international financial crisis, high sense of responsibility, to enhance the international status and competitiveness of the yuan currency. Impact of RMB against the East Asian currencies, and to explore the potential of the renminbi as an anchor currency in East Asia, as well as to promote the development of renminbi internationalization process of East Asian monetary cooperation is important.At present, the process of internationalization of the RMB continuous development of East Asian countries in currency exchange rates influence has also been strengthened, but look at the existing literature, the renminbi become a problem for the potential of East Asian regional anchor currency less studied. Based on a large number of domestic and international access to areas of research relevant literature, a profound study theory of optimum currency area theory and the anchor currency of choice. Theoretical analysis based on the renminbi as a potential anchor currency in East Asia, including the internationalization of RMB government wishes, the degree of internationalization of the RMB value and stability of the renminbi. Then rebuild by Frankel and Shang-Jin Wei of the anchor currency effects regression model, is divided into four periods of the East Asian economies anchor currency for inspection,verification of RMB currency impact on the East Asian economies. The empirical results obtained in the pre-reform the exchange rate system in China, the US dollar is the major East Asian economies anchor currency, the East Asian countries(regions)mainly pegged to the dollar exchange rate in the country for the first time after the RMB exchange rate reform to restart the second exchange reform ago, the dollar was still the main anchor currency, but eased the anchor currency status of the anchor currency in East Asian economies gradually reduced, the RMB against the part of theEast Asian economies have a certain degree of influence monetary position in the foreign exchange reform after the restart So far, the US dollar against the anchor currency in East Asian economies is further reduced, but still the main anchor currency, the main anchor currency status of the dollar will not disappear in a short time, however, the yuan affect the status of the East Asian economies further enhanced RMB yen more than the potential to become an anchor currency in East Asia region.According to the conclusions, the paper suggests that in order to promote the RMB as an anchor currency in East Asia region, China should introduce more policies to regulate and guide the internationalization of RMB, while controlling inflation within reasonable limits, to maintain price stability, and promote the value of the yuan stable resistance, in addition to deepen the exchange rate regime and the domestic financial system, strengthening regional cooperation in East Asia.