Research On The Path Selection Of RMB Internationalization Under The Background Of The Belt And Road Initiative

The Belt and Road Initiative has been put forward for more than ten years,proves to the world China’s determination to build a community with a shared future for mankind.RMB internationalization has also gone through more than ten years of trials and tribulations,and has made obvious progress in trade settlement,investment transactions,foreign exchange reserves and so on.However,RMB internationalization is not an overnight process,it still needs to seek new breakthroughs.At present,RMB internationalization is facing various difficulties,and it is very important to analyse how to seize the new opportunity of the high-quality development of the Belt and Road Initiative,how to help RMB break through the practical problems in various international use scenarios,how to let RMB’s monetary functions fully play their roles,and how to help RMB internationalization choose rational paths.This paper first summarizes the background of the research,clarifies the theoretical and practical significance,summarizes the content and methodology of the full text,and objectively reviews the innovation and shortcomings.Second,this paper distinguishes the different concepts of currency,international currency and currency internationalization,summarizes the theoretical basis of currency internationalization,compares the internationalization experiences of five currencies,and summarizes the main paths of currency internationalization,which provides ideas for subsequent research on the choice of paths for RMB internationalization.Next,this paper analyses the current situation of RMB internationalization,which includes policies,RMB settlement in international trade,RMB usage in foreign investment,regional monetary cooperation and offshore market construction.It then examines the causal test of the Belt and Road Initiative and RMB internationalization,and uses synthetic control methods to verify whether the Belt and Road Initiative has promoted the three monetary functions of the RMB to play an effective role in the regional context.To make the study more focused,this paper identifies the influencing factors of RMB internationalization from four specific pathways:international trade,foreign investment,foreign exchange reserves and financial markets.The results show that: with the Belt and Road initiative,the stronger the network connection between China and the trade networks of countries along the Belt and Road,the better the process of RMB internationalization will be.With the Belt and Road Initiative,China’s OFDI to countries along the Belt and Road plays an important role in promoting RMB internationalization.With the Belt and Road Initiative,the impact of the demand for foreign exchange reserves on the internationalization of the RMB has been significantly strengthened.And interest rates and exchange rates have a significant impact on RMB internationalization.Finally,this paper summarizes the above analyses and studies,and puts forward a targeted proposal for the RMB.In the context of the Belt and Road Initiative we should firmly grasp the opportunity to provide protection for RMB internationalization at the policy and legal levels,increase usage of RMB in international trade and foreign investment,stimulate the real demand for RMB in foreign exchange reserves,make financial market as a solid "bridgehead" for RMB internationalization and broaden multiple paths to jointly promote RMB internationalization.