On The Interaction Of RMB Internationalization,Exchange Rate And Exchange Rate Expectation

AS China's international status has a obvious increase and economic level continues to go up,the RMB is used more and more widely.RMB is becoming an international settlement currency and even becomes a reserve currency for many countries.While the RMB is accelerating process of internationalization,it will bring some problems.For example,in order to promote the level of internationalization,China will gradually relax the exchange rate control and open up capital account.Relaxation control of exchange rate will have a certain impact on the RMB exchange rate.In addition,the opening of capital accounts will increase the impact of overseas capital flows for China's economy.The exchange rate expectation of RMB can largely affect the demand of foreign investors for RMB assets.Therefore,it can be seen that there is a mutual relationship among RMB internationalization,exchange rate and exchange rate expectation.This article will make a theoretical and empirical analysis the mutual relationship all three.First,by reviewing the research literature,this article summarized current research results.Then,this paper introduced the development situation of RMB internationalization,which based on the relevant indicators of measuring the RMB internationalization.Then this paper theoretically studied the mutual relationship among RMB internationalization,exchange rate and exchange rate expectation.Some economic factors that may affect all three was introduced.Then the paper made a empirical analysis of the relationship among the three variables.The results show that there is a long-term equilibrium among the three all,and there is no Granger causality between the RMB internationalization and the RMB exchange rate,but when we made the RMB exchange rate and its exchange rate expectation as a whole,it become the Granger's reason for the RMB internationalization.When we give a positive impact on the RMB internationalization,the exchange rate expectation appear a quick response.It was more sensitive than the exchange rate.However,the response of the RMB internationalization to the impact from the RMB exchange rate expectation is relatively slow.Because only after exchange rate expectations affect the exchange rate,then it affected the RMB internationalization.Finally,according to the theoretical and empirical research results,this paper gave some policy recommendations to help our country to further promote the process of RMB internationalization and maintain the relative stability of the exchange rate.