The Influencing Factors And Promoting Strategies Of RMB Competitiveness

The internationalization of RMB has become an important development strategy for China.Promoting the process of RMB internationalization can enhance the international status of RMB,promote the use of RMB and make RMB occupy a place in trade settlement,foreign exchange reserve and investment transactions.In this way,China will gain greater voice in the international area,which is of great significance to China's economy and politics.To realize the internationalization of RMB,it is necessary to enhance the competitiveness of RMB and make RMB stand out in the competition of international market,becoming a real international currency.Therefore,we need to explore and study the current situation of RMB competitiveness and some aspects to further enhance competitiveness.Therefore,the focus of this study is to accurately measure the competitiveness of the RMB,comprehensively and objectively evaluate it,and on this basis,explore the factors affecting the competitiveness of the RMB,in order to put forward corresponding promotion strategies.After introducing the relevant research background and explaining the meaning of monetary competitiveness,this paper elaborates on the theory of monetary function,monetary substitution and optimal monetary area in detail,which provides theoretical support for the following empirical research on constructing and calculating the index of monetary competitiveness and the related factors affecting the size of monetary competitiveness.Then,based on the three functions of international monetary payment and settlement,investment transaction and store of value,the principal component method is used to construct and calculate the monetary competitiveness index.Then,based on this monetary competitiveness index,the proportion of national income,interest rate level and inflation rate are selected from four perspectives:basic competitiveness,currency value competitiveness,environmental competitiveness and sustained competitiveness.The panel data of RMB and other international currencies including US dollar,pound sterling,euro,Japanese yen,Canadian dollar,Australian dollar and Swiss Franc from 2003 to 2017 are regressed as independent variables.The panel data model is used to study the impact of these factors and the region between different currencies.Farewell.Empirical results show that the competitiveness of the US dollar is still far ahead of other currencies,followed by the Euro.Although the development of RMB is good,there is still a big gap between RMB and other international currencies and there is considerable room for progress.Subsequent empirical results show that the level of economic development,the stability of exchange rate and the development of financial markets of a country are all influencing currencies.Finally,based on the empirical conclusion,this paper puts forward corresponding policy suggestions on how to enhance the competitiveness of RMB from the perspective of basic competitiveness,currency competitiveness,environmental competitiveness and sustainable competitiveness.