Promoting The RMB Regionalization In The 33 Asian Initial Member Countries Of AIIB

To a certain extent,the establishment of Asian Infrastructure Investment Bank(AIIB)alleviates financial pressure of Asian development.China spearheaded the bank and will lead the AIIB to strengthen cooperation with Founding Members.There's no doubt that the status of RMB will also be further enhanced.Considering such,this paper takes the 33 Asian initial member countries as the radiation range of RMB regionalization and empolys the SURADF panel unit root test with a Fourier function to empirically analyze the convergence of the 6 economic indicators:GDP,industrial production,total reserves,CPI,exchange rate and deposit and loan spreads with respect to China.To enhance the accuracy of unit root test,Monte Carlo simulation is used to obtain the critical value of the ADF test statistic.The empirical results suggest that RMB regionalization has made remarkable progress.In the Asian region,the willingness to hold the RMB is higher than Japanese Yen.RMB regionalization has a good foundation in the domestic market.But China's economic foudation and comprehensive competitiveness is less than Japan,which may hinder the process of RMB regionalization.In order to promote the process of RMB regionalization,we should make a breakthrough from the three aspects:(1)Improve the degree of opening to the outside world and strengthen trade with countries in Central Asia and the Middle East.(2)Expand outward foreign direct investment.(3)Establish the pilot zone of free convertibility of RMB.