Spatial Expansion Of RMB Internationalization:Influencing Factors And Future Potential

China's strategic goal is to become an open,inclusive,prosperous and civilized world power.The internationalization of RMB is an important step to achieve this goal.Only when the RMB occupies an important position in the international money market,can the RMB really be accepted by the other countries.If the RMB could not be freely traded,it does not match the strategic goal of China's further reform and opening-up.From the background of the times,the traditional international monetary system has been unable to meet the needs of the current global economic development.Judging from the background of the time,financial crises broke out frequently in the international financial market in recent years.The absolute monopoly of the US dollar in the existing international monetary system makes the financial crisis in the United States have an excessively negative impact on other countries It is the general trend to establish a new international monetary system to adapt to the new pattern of the world economy.As the second largest economy in the world,China has not gained the currency position equals to its economic status.The current international financial situation is both an opportunity and challenge for RMB.Therefore,the internationalization of RMB is a major issue in the future of China's finance.To improve the internationalization level of RMB is an important measure in the reform of the international monetary system,and this is also a reasonable and inevitable measure.In recent years,with the increasing level of RMB internationalization,China has more strength in maintaining the stability of the financial system,reducing trade risks and promoting Chinese enterprises to participate in overseas competition.RMB internationalization has entered a new stage and is also facing new challenges and opportunities.How to continue to promote the relevant research of RMB internationalization under the new situation has very important practical significance and academic value.The existing research mainly uses the research methods of political economy and finance to study this problem.Most of the conclusions are that the benefits of people's internationalization outweigh the costs,which meets the needs of China's national development strategy.However,it is scarce to use the cross-disciplines of political economy,finance and geography to study this issue.This paper analysis the spatial evolution of RMB internationalization,puts forward corresponding conclusions,and enriches the existing research literature.The basic contents of this paper include: the basic theory of the spatial evolution of currency internationalization,the spatial evolution of dollar and other currencies internationalization,the spatial evolution of RMB internationalization,the analysis of the main factors influencing the spatial evolution of RMB internationalization,and the future spatial evolution of RMB internationalization.Specifically,this paper makes an in-depth analysis of the spatial evolution of RMB from the perspectives of RMB settlement in cross-border trade,bilateral local currency swap,RMB as an international reserve currency and offshore RMB center.The empirical analysis shows that the proportion of China's imports and exports to world imports and exports(reflecting China's trade performance)and the proportion of China's stock market value to China's GDP(reflecting the depth of financial development)are important factors affecting the spatial evolution of RMB internationalization.However,the current proportion of RMB offshore credit to global credit(reflecting the performance of RMB in global credit market)has no obvious impact on the spatial evolution of RMB internationalization.Therefore,China should continue to expand exports,encourage imports and consolidate its position as a major trading country while maintaining GDP growth.At the same time,the government should further to deepen China's financial system reform,accelerate the development of credit markets both inside and outside the RMB market,and increase the proportion of RMB credit used in the global total credit market.This paper also constructs the potential index of RMB spatial expansion,calculates the potential index of RMB spatial expansion of each economy,and divides the evolution space of RMB internationalization into four categories: weak potential area,medium potential area,strong potential area and extremely strong potential area,and gives corresponding suggestions for the future evolution space of RMB internationalization.