Promote Research Into The Internationalisation Of The Renminbi Cross-border Yuan Trade Settlement

Since the US sub-prime crisis, the confidence of international community for USdollar as been plummeted. Therefore, people gradually turns their attention to RMBwhich value is more stable and the demand for internationalization of the RMB isincreasing. To find a suitable way for the internationalization of the RMB, we should notonly learn internationalization experience of other major international currencies, butalso consider the condition of our country and the economic environment of whole world.On April8th,2009, China’s State Council decided to carry out the experimental units ofRMB settlement in cross-border trade. It means that the process of internationalization ofthe RMB has been started formally. After more than two years of development, thegeographical scope and business scope of RMB settlement in cross-border trade havebeen expanded gradually. In addition, RMB settlement in cross-border trade has achievedgood results in settlement volume, policies®ulations and request from internationalmarket. Today, RMB is involving in international trade settlement at a higher level withwidely accepted and welcome of international community. It promotes the process ofRMB internationalization effectively.Although RMB settlement in cross-border trade still need to be developed andimproved with many limitations in the progress of promoting RMB transformation tointernational currency, its significance and role for RMB Internationalization are verysignificant. It has made great contribution to RMB internationalization throughpromoting application extension of RMB in regional level and functional level effectively.Looking ahead, we believe that RMB settlement in cross-border trade will realize furtherdevelopment and RMB internationalization will come true eventually under theeconomic policy guidance of government and the coordination of relevant measures.