Study On Influence Factors Of International Payment Currencies

From silver standard,gold standard,gold exchange standard to the Bretton Woods System,the international monetary system has experienced sudden changes.The breakdown of the Bretton Woods System in 1974 made US dollar lose its super-sovereign position and the multi-reserve currency system is being established.The competition between the unilateralism led by America and bilateralism or,that’s say,multilateralism insisted by the rest of the universe is fierce.However,lessons were learned when the 2008 global financial crisis occurred and the main economies released liquidity by quantitative easing policies to transfer the crisis and the third world and the emerging economies became the main victims of the crisis.Government of these countries became aware of the importance of revitalizing current monetary system.RMB internationalization began in 2009.For the following eight years,China has made impressive progress in its currency internationalization.We could find that RMB internationalization now can be considered as an international payment currency since it has functioned well in cross-border payment and now the seventh largest international payment currency in the world,RMB also was announced to enter the SDR basket in October and became one of the official reserve currency of IMF.However,RMB’s becoming a world payment currency process seems to encounter a bottleneck with a decrease in payment share from the late months in 2016.Considering RMB internalization,questions come up naturally like,what kind of currency will it became?Currency like dollar,a global super-sovereign currency?Or a reginal currency like euro in Europe?Or neither of it,like Yen?Why was dollar the unilateralism and for so long?And why pounds lost their position after WWII?To answer all these questions,we have to answer two:what’s international currency and how it becomes one?After the review of the development of international monetary system,we come up the question,and next compares the main models of money and choose the matching model for international currency since it explains from the perspective of microeconomics that how a currency can be used as a medium of exchange in the international trade.The author then uses national panel data from August,2012 to September,establish models using different empirical models,and draw conclusions.