Research On The Impact Of Bond Market Opening On Rmb Internationalization

In recent years,China’s "Belt and Road" circle of friends has been continuously expanded,and its financial infrastructure has been continuously improved.Under the influence of the global novel coronavirus pneumonia epidemic,China’s economy has recovered rapidly and steadily.The international community’s trust in RMB assets has been greatly improved.The scale of RMB assets held by international market players is increasing,and RMB internationalization has achieved initial results.However,at this stage,the cross-border circulation of RMB mainly depends on cross-border trade settlement under the current account.The development of RMB internationalization is facing a bottleneck,and it is urgent to find new ways to achieve a higher level of RMB internationalization.The bond market opening provides a new way to promote RMB internationalization.As an important part of the financial market,bond market can provide more channels for the cross-border circulation of RMB,which is conducive to enhancing the international influence of RMB and accelerating the process of RMB internationalization.First of all,this paper analyzes the development background of RMB internationalization and the role of bond market opening in the development of RMB internationalization,combs the research literature related to bond market opening and RMB internationalization,and clarifies the necessity and feasibility of studying its impact on RMB internationalization from the perspective of bond market opening.Secondly,it constructs the theoretical basis of the influence of bond market opening on RMB internationalization,that is,bond market opening can affect RMB internationalization by supporting RMB to realize international monetary function and providing RMB circulation channels,which provides theoretical basis for the following empirical research.Again,combined with the two channels were constructed econometric model,empirical test of the bond market opening in the role of RMB internationalization.Based on the mechanism of supporting the realization of monetary function,this paper constructs the currency internationalization index from the perspective of currency valuation unit,trading medium and value storage function,and establishes an unbalanced panel data model by using the data of RMB,US dollar,Japanese yen and British pound to test the impact of bond market opening on RMB internationalization based on monetary function.Based on the mechanism of unimpeded monetary circulation channels,the Chinese bond market is divided into onshore bond market and offshore bond market according to the place where the currency realizes circulation.By establishing a VAR model,the contribution of bond market opening based on the monetary circulation channel to the RMB internationalization is tested.Finally,policy recommendations are proposed based on the conclusions of the full text.The research in this paper shows that,on the one hand,the bond market opening can attract domestic and foreign market participants by providing convenient trading venues and rich bond products,and support the realization of the functions of currency valuation units,trading media and value storage,thus promoting the function of RMB international currency.On the other hand,through the opening up of onshore and offshore bond markets,the channels of currency outflow,backflow and overseas circulation have been unblocked,and the cross-border circulation of the RMB has been promoted,thus promoting the RMB internationalization process.China should promote the internationalization of RMB by promoting the development of onshore bond market,promoting the development of offshore bond market,improving the bond market system and strengthening the linkage with other strategies.