Cross-border Financial Transaction Drives Internationalization Of RMB

In the post-crisis era,the global economy has slowly recovered from deep adjustments.Countries in the world have not yet fully emerged from the quagmire.The international situation is still complicated.Especially since 2015,the “black swan” incident has frequently occurred,and the trend of reverse globalization and populism have also become the world's Changes in the economic landscape bring about greater uncertainty.With the continuous deepening of China's economic system reform and continuous optimization of industrial structure,China has played an increasingly important role in the global economic landscape with its undeniable trend.The process of RMB internationalization is precisely the process in which China participates in the global economy and finance.The process of governance is also a process of China's economic reform and development.Promoting the internationalization of the renminbi is not only important for China's reform and opening up,but also makes China participate in global economic and financial governance with a more tolerant and more peaceful attitude.Cross-border trade and financial transactions are the driving force behind the internationalization of the renminbi.However,as pointed out in the report of the Nineteenth Congress,the external adverse environment of the weak global economic recovery,frequent local conflicts and turbulence,and intensified global problems have causedthe weakening of the driving force for RMB internationalization under cross-border trade.However,after a longitudinal comparison of the driving forces for RMB internationalization in recent years,it can be seen that the rising trend of the integrated proportion of international financial renminbi-denominated transactions including direct investment,international credit,international bonds,and bills is very clear.It will become an important factor in supporting the internationalization of the renminbi in the future.In addition,the Nineteenth Congress proposed that "we must promote the formation of a new pattern of openness." Economic opening,especially financial liberalization,also provides necessary policy support for strengthening the cross-border financial transactions of RMB.Therefore,cross-border renminbi financial transactions will provide a continuous driving force for the internationalization of the renminbi,continue to tamper the economic foundation of renminbi internationalization,and promote the healthy and orderly development of renminbi internationalization.This article focuses on the effect of the RMB cross-border financial transaction function on the internationalization of the RMB.Based on the in-depth elaboration of the progress of the RMB internationalization,it reflects on the problems existing in the implementation of the RMB internationalization strategy and analyzes the cross-border in-depth analysis.The strategic significance of financial transactions to drive theinternationalization of the renminbi,using the VAR model to select relevant 2013-2016 monthly data for empirical testing.The empirical results show that the RMB financial transaction function has a positive effect on the internationalization of the RMB,and the contribution of the RMB foreign investment to the internationalization of the RMB is much higher than the contribution of RMB overseas loans and the overseas circulation of RMB bonds.At this stage,it should be The "One Belt and One Road" strategy is building on the principles of controllable risk and ease-to-hardness,and has gradually strengthened renminbi cross-border financial transactions with emphasis and planning.Therefore,this article proposes strategies to strengthen the RMB financial transaction function to drive the internationalization of the RMB from the short-,medium-,and long-term measures and necessary safeguards.