Research On RMB Cross-border Circulation

Under the accelerating trend of global financial integration, and with the strength of Chinese economy and politics, the circulation of RMB has expanded to more countries and areas worldwide, RMB has been accepted as a settlement currency and a reserve currency in countries other than China, the trend of RMB regionalization and internationalization appears step by step, until June 2010, the overseas areas of cross-border trade for the settlement of balances in RMB have expanded from the Hong Kong or Macao Special Administrative Region of China and ASEAN region to all countries and regions. As the relation between our country and global economy and finance becomes more and more closer, demand for the RMB cross-border use has further increased, the role taken by RMB in the cross-border trade and investment and financial markets will become more important. It means a lot to the macro-control policies of the central government, making and the effectiveness of the central bank monetary policy and the strategy of RMB regionalization transition to the internationalization. Therefore the research of cross-border circulation of RMB will be very important to the strategy of RMB internationalization and implementation of macro policy.Chapter 1 of the Paper states the background and significance of RMB cross-border, and makes a summary of the calculation methods of RMB cross-border home and abroad, which lays the foundation for the calculation afterward; Chapter 2 introduces the reasons and circulation channels for the holding of RMB overseas, and generalizes the scale of RMB cross-border from the qualitative angle; Chapter 3 analyses the positive and passive effect on our country's economy; Chapter 4 adopts the indirect method on which few scholars make research to circulate the scale of RMB held overseas, especially the fluctuations from 2005 to 2010; Chapter 5 comes up with some suggestions on how to react to the passive effect.