The Research On The Factors Influencing The RMB Cross-border Trade Settlement

With the increasing comprehensive national power,China nowadays globally ranks 2nd in terms of general domestic production.The scale of China's imports and exports scale is expanding and accounting for increasing share of world trade.Chinese enterprises get more and more involved in the international trade and more and more frequently conduct imports and exports trade settlement.However the fact that enterprises generally settle in dollars and other foreign currencies is not in line with the current trade standing that China enjoys.Besides the financial crisis exploded in the U.S.in 2008 affected the global and eventually became a worldwide financial crisis.The dollar-centered monetary system collapsed and exposed its internal defects.The exchange rate major currencies,such as dollar euro and yen,sharply fluctuated,posing exchange rate risks to the global international trade capital flows and settlement and exerting a tremendous influence on the Chines economy.Therefore people continuously appeal for settlement in RMB.China launched the policy of RMB settlement of cross-border trade in 2009.It develops rapidly and accounts for more and more portion in the current total volume of international trade.RMB is far behind other major settlement currencies like dollar and euro in the terms of global use ratio.Therefore China still needs to constantly and actively promote cross-border settlement policy and expand the range of application of RMB.This essay,based on the existing academic results and current economic situation,respectively studies the effects on the RMB cross-border settlement exerted by macro economy,foreign trade,the exchange rate of RMB,circulation channels and other factors.Then the essay studied the specific effect by establishing the VAR in the empirical research,finding that both the internal and external value of RMB are the most important factors under the current circumstance.The smooth practice and development of RMB cross-border settlement Is the first and the most crucial step toward the internationalization of RMB.The first stage of the internationalization of RMB is essentially the valuation and settlement of trade but the impact exerted on the economic and trade development among China and other countries cannot be ignored.Hence it is incredibly meaningful for China to initiate the internationalization of RMB on the basis of the smooth development of RMB crossborder settlement.Therefore further study on the RMB cross-border settlement will be conducive to the solution to the problems lied in the development and the promotion of internationalization of RMB.