Post-crisis Era Of Cross-border Rmb Settlement Issues Discussed

With the constant promotion of reform and opening-up, the development of economic in China and the improvement of participation in global trade, RMB is getting many concerns from all related parties in world. In particular, the outbreak of the global financial crisis, the current international monetary system exposed the inherent defects and brought negative effects to the country, enterprises and other parties. RMB cross-border settlement, as one of the effective ways for the regional economic development and promotion between China and neighboring countries, became a hot topic. It can avoid foreign exchange risk and promote the steady growth of China's foreign trade as well. It has great possibility and inevitability to promote RMB cross-border settlement.Since the pilot of running in 2009, with efforts from all parties of government, banks and enterprises, RMB cross-border settlement has made great achievements. Accountant RMB cross-border settlement amount exceeded 506.3 billion yuan last year and it has exceeded 360.3 billion yuan in the first quarter this year which accounting for about 70% of last year's total RMB settlement amount. Although the outlook of RMB settlement is optimistic, we found that quite a lot of cross-border settlement issues and numbers of challenges emerged. All of the communities of cross-border participation in the RMB settlement are needed to understand and solve these problems.This paper is combined by the theories and analysis of RMB cross-border settlement and monetary competition, ordered the background, implementation and achievements of RMB cross-border settlement, pointed out the main effect to macro economy and microcosmic. This paper emphatically analyzed the prospect of RMB settlement, pointed out that with the favorable factors of steady growth in foreign trade, strong RMB currency and expanding cooperation between governments, the outlook of RMB settlement is bright. Meanwhile there are a lot of problem included small size, structural imbalances and poor substainability. The paper analyzed the constraints in the process of cross-border settlement and pointed out that as Chinese enterprises without of the right to choose settlement currency because under the lowest level in international work division, export product high substitutability, the habit of currency settlement and level of development of domestic financial, all the constraints will limit the speed of cross-border settlement. At last, The paper made several suggestions with the government, banks and enterprises sights to improve the cross-border settlement of RMB.