The Research On The Influence Of Capital Account Liberalization On Currency Internationalization

We must adhere to the economic construction as the center,deepen the reform and expand the opening up to make great achievements in the socialist modernization drive of our country.The total economic amount has been second in the world,but compared with the powerful economic strength,China's legal sovereign currency,RMB,has never been in the International Valuation units,settlement means and In the official foreign exchange reserve,the status of the renminbi in the international monetary system is not well matched with the role of China in the world economy.The way of internationalization of RMB is too long and the liberalization of capital account has always been the focus of scholars' concern.This paper discusses the liberalization of capital projects and the internationalization of money.The preamble introduces the basic information of the purpose,value and framework of this article.The first chapter defines the basic concepts of capital projects and currency internationalization,and the second chapter is part of the capital of the world.The situation of project control and the situation of its currency internationalization is summarized and analyzed.In the third chapter,the measurement model is established by using Eviews software.In addition to considering the degree of capital liberalization as an explanatory variable,the first order of the currency internationalization is considered as an explanatory variable,considering the currency inertia.It also includes five control variables,such as economic strength,price level,exchange rate stability,deepening degree of financial market and the degree of dependence on foreign trade,in order to verify that the degree of liberalization of capital projects will help to improve the internationalization of a country's currency and provide empirical evidence for the internationalization of RMB to realize the liberalization of capital projects.The argument.This paper,through the combination of qualitative and quantitative research methods,mainly draws the following conclusions: first,the liberalization of capital projects is not an overnight,but a dynamic process,need to step by step in a sequential way.The degree of the internationalization of the second,first countries is not determined by a simple economic factor,but is influenced by a variety of factors,but the most important is the degree of liberalization of the capital account.If the third,first country currency successfully entered the ranks of foreign exchange reserve currency,it will continue to develop because of the inertia factors.It is obvious that in the process of internationalization,the importance of the early stage of development is self-evident.Fourth,from the empirical analysis of the RMB,the results of the effect of some control variables on the degree of internationalization of RMB are not significant,and contrary to the expected symbol,this result may be relatively less related to the data samples,and on the other hand,the degree of RMB internationalization is still not high.How to promote the further liberalization of China's capital projects and further promote the internationalization of the RMB to achieve the internationalization of the RMB,this paper puts forward the following four research proposals: first,to provide the momentum of permanent economic development.Without market size and economic volume as a guarantee,a country's currency can hardly be widely used in the world and become an international currency.Second,the construction of a reasonable and good financial system.The developed financial market can support economic development,increase value discovery,promote risk sharing,and cushion the financial risks brought by currency internationalization.Third,improve thereform of exchange rate market.The liberalization of capital items is the trend of the times.According to the "three yuan paradox",we can see that to maintain the stability of monetary policy,it is necessary to give up the fixed exchange rate system,so it is inevitable to realize the exchange rate market.Fourth,strengthen the supervision of cross-border capital.With the increase of the liberalization of capital projects,the international capital flow is increasing,and the risk is difficult to avoid.Therefore,the central bank and the State Administration of foreign exchange,such as the State Administration of foreign exchange,also need to strengthen supervision so as to make the "invisible hand" and the "visible hand" complement each other so as to advance the process of the liberalization of capital projects in China.