Study On The Impact Of The Development Of Offshore Bond Market On Currency Internationalization

Offshore bonds were first born in the European dollar market.After World War ?,a large quantity of dollars were accumulated in the European currency market.Under the stimulation of the investment and financing needs of multinational corporations,financial institutions began to operate the European dollar loan business,and further derived the European debt instruments as a new type of debt financing.Since the offshore bonds have the advantages,such as simple procedures,free distribution,keep confidential for the investors and so on,it attracted the eyes of both sides of the loan quickly and developed into one of the main forms of international financing.The offshore bond market can help optimize the global allocation of resources,improve the efficiency of capital flow and improve the performance and visibility of its currency.It is also conducive to advancing the internationalization of a country's currency.Under the background of global economic integration and diversification of monetary system,it has its historical experience and practical feasibility to promote the internationalization of the currency by developing the offshore bond market.This article firstly reviews the theory of currency internationalization and offshore bond market,and then expounds the role of offshore bond market in promoting internationalization of currency.Secondly,through combing the development of the offshore bond market,the article analyzes the driving and constraints conditions when developing the offshore bond market;Thirdly,the article analysis the impact of the development of offshore bond market on currency internationalization from theoretical analysis and realistic analysis,and then based on the historical experience,analyzes the key role of offshore bonds market played in the internationalization of currency in the United States and Japan.On the basis of qualitative analysis,in order to better reflect the mechanism of the offshore bond market on the currency internationalization,this article selecting the main international currency like the dollar,euro,pound and yen as the research objects,then using the data from 1999 to 2016 to conduct the empirical analysis and the result is that the offshore bond market in the United States,Europe,Britain and Japan had positive effects on the currency internationalization and also had long-term cointegration relations.The enhancement order from strong to weak was the euro,pound,yen and dollar.At the same time,by constructing the impulse response function,it expressed the dynamic impact of international offshore bond market on internationalization of currency.Lastly,this article draw a conclusion from the theoretical analysis,realistic analysis and empirical analysis.It also.analysis the realistic conditions and great potential of the internationalization of the RMB under the basic situation of our country,and then put forward some suggestions to boost the internationalization of the RMB after learning from the international experience.