Research On RMB Internationalization From The Perspective Of International Valuation Monetary Function

2018 is the 40 th year of China's reform.China's economic strength and comprehensive national strength have been greatly improved,and the process of RMB internationalization has gradually matured.The RMB settlement of cross-border trade pilot project of Our Government was officially launched in 2009.In October 2010,the Urumqi Central Branch of the People's Bank of China issued the Interim Measures for RMB Settlement of Cross-border Direct Investment in Xinjiang,which pilot the implementation of "RMB Overseas Direct Investment",and then in October 2016,the RMB was incorporated into a basket of SDR currencies.The international use of RMB was gradually recognized.Actively promoting the internationalization of RMB is the result of both subjective and objective factors.Subjectively,China is the second largest economy in the world,which has certain influence and contribution to the world economy.Therefore,we need to have a certain voice in the international monetary system.China needs to gradually promote and realize the internationalization of RMB to avoid the impact of the US economic crisis and economic fluctuations on China.We also need to ensure the security and stability of reserve assets denominated in US dollars.Objectively,after the collapse of the Bretton Woods system,the international monetary system has entered the present Jamaica system.The Jamaica system has not substantially changed the dependence of the international market on the dollar,and the inherent defects of the international monetary system still exist.The US sub-prime mortgage crisis caused a large fluctuation in the exchange rate of the US dollar,which was a heavy blow to the world's economies.Diversification of the international monetary system has become the voice of many countries.In order to better realize the diversification of the international monetary system,this paper analyses and studies the influencing factors and degree in the process of RMB internationalization.Firstly,the development process of RMB internationalization is sorted out,and the status of RMB internationalization is summarized from the perspective of RMB International Monetary function.On this basis,from the perspective of RMB as an international monetary trade and financial function,the influencing factors of RMB internationalization under different functions are empirically analyzed by selecting indicators.At the trade level,by analyzing and comparing the main international monetary internationalization paths,this paper chooses the international payment share of currencies as the index to measure the level of monetary internationalization,and uses LSDV model to analyze the influencing factors of RMB's trade settlement function as an international currency;at the financial level,it chooses the share of RMB's direct investment settlement business,RMB's international bonds and RMB's international bonds respectively.As an index to measure the level of currency internationalization,the share of bill issuance is used to analyze the influencing factors of RMB as an international monetary and financial investment and financial asset issuance function by OLS regression model.Finally,on the basis of empirical analysis,this paper makes a comparative study on the influence factors and degree of RMB as an international currency under different functions.It holds that trade,exchange rate and economic scale factors mainly affect RMB's international payment function,investment and exchange rate factors mainly affect RMB's financial investment function,and economic fluctuation factors mainly affect RMB's issuance and circulation of financing assets function.Therefore,the paper suggests that the promotion of RMB internationalization should start with different international monetary functions in the light of economic situation,step by step,and put forward more targeted suggestions for the promotion of RMB internationalization.