Research On RMB Anchor In "The Belt And Road"

With the development of economic and financial globalization,today various countries' economic had taken-off,and the international monetary system presents a diversified trend.Outbreaks of the Asian financial crisis and the subprime crisis not only exposed the deficiencies in the current international monetary system,but also prompted many countries(regions)to reconsider the irrationality of the past exchange rate regime as treating dollar as the sole anchor.The expansion of China's trade shares and economic strength improving the RMB's international status and competitiveness.And "the Belt and Road Initiatives"make China's influence in this region continues to strengthen,and promote the cooperation in economic and trade.RMB have attracted much attention,and shows it could be the monetary anchor in this region.Under such a background,this paper mainly discusses the RMB monetary anchor problem.In the practical perspective,there are a few studies about the RMB anchor of"the Belt and Road Initiatives".Then this paper introduces the theory of optimal currency area,reviews the evolution and choosing experience of anchor currency selections international monetary system.Concluding that the "the Belt and Road Initiatives" region has the potential to be a currency area,and RMB could be the anchor currency.Then in the analysis of reality,this paper analyzes the current situation of monetary cooperation in "the Belt and Road Initiatives" region as well as RMB's regional status,discussing Chinese economics development and so on.Concluding that the RMB anchor does have a realistic basis.Then analyzing the importance and difficulties of the RMB anchor.In the part of empirical analysis,this paper uses index to compare RMB and other monetary.And using the external monetary mode and the rolling regression to measure the anchor currency effect of RMB,euro,dollar,yen's influence trend of 9 economies among the region.Results show that the effect of RMB has a tendency to increase gradually,but dollar is still the dominant currency in the region.Finally,based on the findings,in the conclusion part,this paper suggests that we should focus mainly on the economic development,the cooperation in trade and economics and so on,to promote the RMB internationalization.