The Research For Tokyo Offshore Market Development’s Influence On The Internationalization Of The Yen

The internationalization of a country’s currency is an extension of the currency in the currency function to foreign countries.The offshore market is an international market that is financed outside the domestic financial system and is not regulated by the relevant domestic legal system.So whether the establishment and development of offshore markets can effectively promote the internationalization of a country’s currency ? The answer is yes.Firstly,the investment and lending activities in offshore financial markets can increase the visibility of a country’s currency and increase the demand for domestic currency in offshore financial markets.Secondly,The financial business carried out on the offshore market is not regulated by the legal system of the currency issuer,The transaction is more flexible and convenient,and it can effectively improve the use of their currencies in the world market.Firstly,this article discusses the course of the internationalization of the yen from the aspects of the yen reserve currency,the settlement currency and the investment currency,and analyzes the reasons for the ultimate failure of the yen.Secondly,it summarizes the offshore market in Tokyo 0f Japan,and analyzes the impetus of the Tokyo offshore market to promote the internationalization of the yen and the shortcomings of the process.And then choose the variables appropriately,using the data from 1992 to 2016,using the GMM method to analyze the impact of Tokyo offshore market development on the internationalization of the yen.Finally,according to the previous chapters of the theoretical and empirical analysis to illustrate the Tokyo offshore market in Japan to promote the internationalization of the necessary conditions.The empirical results show that the Tokyo offshore market and the yen are positively related to the reserve currency,the settlement currency and the investment currency internationalization,and through different tests,it shows that the effective development of the Tokyo offshore market can promote The realization of the yen as a reserve currency,settlement currency and investment currency internationalization process.In general,the establishment of the Tokyo offshore market to a certain extent,to promote the process of internationalization of the yen,but due to the development of offshore markets is not perfect,the financial system reform is not complete,so that there are some shortcomings in the process and limit the yen internationalization process.However,if the economic stability of the development,to master the independent monetary sovereignty and build a developed financial market,then the Tokyo offshore market will be able to better promote the internationalization of the yen.