Research On The Size Of Circulating Cross-border RMB And Influence Factors

With the continuous improvement of China's comprehensive strength,the RMB has gained more and more recognition in the international community,the successful accession to the special drawing rights(SDR)also proves this point.Since the establishment of cross-border RMB settlement pilot in 2009,the region and size of RMB cross-border circulation has been greatly improved.Since proposal of internationalization of the RMB,the road of RMB internationalization is constantly advancing,and RMB cross-border circulation is an important starting point for the internationalization of RMB.At present,the main area of RMB cross-border circulation is China's neighboring countries and regions,which is formed through frequent exchanges of politics,trade and culture.With the constant introduction of related cross-border RMB policies,the establishment of the RMB clearing bank around the country as well as the signing of a large-scale bilateral currency swap agreement,the RMB has went out of Asia,began to move toward the world.The huge amount of overseas RMB makes China government and central bank has to take it into account when make policies.It is an important step in the process of RMB internationalization to facilitate the cross-border RMB circulation.This paper is divided into five parts to study the scale of RMB cross-border circulation and its influencing factors.The first part of this paper describes the background of cross-border circulation of RMB,then elaborated the research significance of the cross-border circulation of RMB,and then reviews the current research status of domestic scholars for the cross-border circulation of RMB,finally explains the research framework and research methods.The second part firstly introduces the definition of international currency,implementation mode,and then describes the connotation of the internationalization of currency,and then introduces the relationship between the cross-border circulation of RMB and RMB internationalization,finally introduces the current situation of the international use of RMB.The third part of this article introduced the inflow and outflow of RMB cross-border circulation channels,and then introduces two kinds of calculation methods of the scale of cross-border circulation of RMB,namely direct measuring method and indirect method,then compare these two methods and show their advantages and disadvantages,finally estimated the scale of cross-border circulation of RMB in recent years.The fourth part of this paper introduces the factors that affect the stock of RMB,and then use the autoregressive distributed lag(ARDL)model to quantitatively analyze the relationship between the RMB stock and its influencing factors.The fifth part of this paper makes a summary of the article,and offers proposals to promote cross-border RMB circulation from the macro and micro aspects.