Research On The Internationalization Of RMB Pricing Function

At present,the RMB has become the world's fifth largest payment currency and the third largest trade financing currency.With the official inclusion of the SDR currency basket in 2016,the role of the RMB in the international monetary system is becoming increasingly important.However,judging from the current status of the pricing function in the process of RMB internationalization,the development of pricing functions in cross-border trade,international financial markets and foreign economic statistics and management lags far behind other functions,which has hindered further internationalization of other functions of the RMB.Facing the current opportunities and challenges,it is particularly urgent to improve the current situation of the RMB pricing function and give full play to the important role of RMB pricing in the internationalization of the RMB.In this context,this paper combs and summarizes related literatures at home and abroad,and analyzes the related concepts and theoretical foundations of the internationalization of RMB pricing functions.This paper examines the internationalization of the RMB pricing function from both the official and private sectors to find out the current problems.Through the conditional analysis of the RMB pricing function,we fully understand the advantages and disadvantages of the internationalization of the RMB pricing function at this stage.This paper uses PCSE and FGLS regression methods to empirically analyze the influencing factors of the internationalization of the currency pricing function.It is found that economic strength,trade scale,financial openness and network externality have a positive effect on the internationalization of currency pricing function,and the stability of currency value has a negative impact on the internationalization of currency pricing function.Subsequently,through the comparative study of the internationalization process of the JPY,the USD and the DEM pricing function,this paper finds out the key factors of the internationalization of the major international currency pricing functions.This paper suggests:In terms of economy,it is necessary to promote economic restructuring and improve the overall development quality of the economy.At the same time,it can also expand regional economic cooperation and accelerate the development of the RMB pricing function.In terms of trade,we must promote the diversification of the trade market,further expand the scope of RMB pricing,and increase the heterogeneity of China's export commodities and improve the trade structure.In terms of finance,we must first deepen the degree of financial development,carefully and steadily promote the convertibility of capital projects,and secondly promote the construction and development of offshore and onshore markets.It is also essential to promote the RMB's share of the commodities in the commodity market.At the same time,it is necessary to improve the financial infrastructure to provide the most basic guarantee for the internationalization of the RMB pricing function.In other respects,it is necessary to actively participate in the construction of international organizations,strengthen foreign-related economic sectors to denominated in RMB,and publicize the pricing of RMB.