Research On The Machanism Of Currency Swap Promoting The Internationalization Of RMB

China began the process of internationalization of the RMB after Subprime mortgage crisis.However,the internationalization of RMB in China is initiated under the premise that the capital project is not fully open.The renminbi can not be freely convertible,so that the foreigner's use of RMB is limited,making the RMB internationalization model "cross-border business and offshore center" lack sufficient Of the RMB source of funds,thereby limiting the RMB in the international circulation and use.Since 2009,China has signed a bilateral currency swap agreement with central banks or monetary authorities in 36 countries and regions such as Hong Kong,Korea,the European Central Bank,Switzerland and Russia,with a total amount of more than 3.3trillion yuan.This paper studies the role of RMB currency swaps in promoting internationalization of RMB under the condition that capital account is not fully open.In this paper,we use the qualitative research method to summarize and deduce,first through the ternary paradox to get the independence of monetary policy,leading to the necessity and pattern of RMB internationalization;re-analysis of the internationalization of the capital account is not open in the capital account of this constraint And thus the formation of RMB foreign export difficulties;and the RMB currency swap happens to have the role of exporting RMB,thus solving the RMB output difficulties for the RMB internationalization model provides a source of funding,indirectly promoted the internationalization of the RMB;And then analyze the limitations and risks of currency swaps in the opening;and finally draw conclusions and related suggestions.RMB currency swap agreement into the actual opening phase,the export of RMB to solve the RMB output dilemma,trade and investment financing and provide liquidity for the offshore market support,which indirectly promoted the internationalization of the RMB.Although currency swaps have a certain effect on the internationalization of the renminbi,we need to see that this effect is indirect,and that the amount of RMB currency swaps actually opened is only a fraction of the amount.With the opening of the capital account,the currency swap function will return to the external emergency liquidity support.The fundamental way out of the internationalization of the RMB is to improve the comprehensive national strength of our country.The key to the internationalization of the RMB lies in that whether it can maintain the steady growth of the domestic economy.