An Empirical Study On The Influencing Factors Of Currency Internationalization From The Perspective Of Monetary Function

The concept of International currency has multiple dimensions.In International trade,it plays the role of pricing and settlement,and in International finance,it plays the role of investment and financing,moreover,different national authorities also regard it as an important means of International reserve.If currency of one country(region)becomes International,it is not only a comprehensive symbol of its economic strength,but also an important position of the country(region)in the field of International finance and International trade.The Internationalization process of traditional Internationalized currencies cannot be replicated,but other countries can explore their relevant influencing factors through theoretical and empirical analysis,and provide policy recommendations for the Internationalization process of their own currencies.From the angle of theory and historical experience of traditional Internationalized currencies,if currency of one country(region)wants to become an International currency which is recognized by the International community,it will go through a long and tortuous process inevitably.In the process,once a problem occurs in a certain link,countries(regions)may have serious risk problems.It is likely to be not only the reversal of the process of currency Internationalization,but also the economic development of the country(region)will be greatly affected.History is irreversible.Therefore,if one country(region)wants to promote the Internationalization process of its own(regional)currency,it must follow the obj ective laws of the traditional Internationalized currency,and find a path that suits itself at the same time.This paper starts from the function of value storage,the function of trading media and the function of pricing unit,and measures the Internationalization standards from the perspective of monetary function,and empirically discusses the influencing factors of Internationalized currencies;According to the availability of data,the data of RMB,US dollar,British pound,Euro,Japanese yen and Swiss franc from 1999 to 2017 with 19 years span are selected to establish static model regression and dynamic model regression from the perspective of monetary function.Through empirical research,it is found that strong economic strength and high-speed economic growth,exoteric foreign trade and export scale,strong currency value and purchasing power of a country(region),open financial market are all significantly and positively affecting the level of Internationalization of a country's(regional)currency,while the fluctuation of the real effective exchange rate and the inflation rate negatively affect the Internationalization level based on the function of trading media and pricing unit in 1%to 5%significant degree;In addition,foreign direct investment and outward foreign direct investment have contradictory effect into increasing Internationalization level from the perspective of value storage function and trading media function,for example,increasing outward foreign direct investment can improve the International trading volume of a country's(regional)currency,but it has a negative impact on the growth of its currency's global foreign exchange reserves;Increasing foreign direct investment is beneficial to a country's(regional)currency to become an International reserve currency,but it has a slight inhibitory effect on the International trading volume.In the process of Internationalization of various functions of the currency,it can be transferred according to different key points and adjust the policy.With the introduction of the "Belt and Road Initiative",the Internationalization of the RMB has opened up a new situation.While driving the regional economic development along the line,it has also increased the cross-border settlement of the RMB along the countries,which has made the RMB form a certain degree in Asia and the regionalization can be freely flown between some Asian countries.This has increased the RMB's right to speak in the International monetary system and laid a solid foundation for the future development of the RMB Internationalization.