Research On The Game Of Seigniorage Related To The Cross-Border Trade Rmb Settlement Between China And Vietnam

RMB cross-border settlement bring many benefits for china. On the one hand,it is beneficial to improve China’s international status and speed up the process of internationalization of RMB. On the other hand,it will also be able to avoid exchange rate risk, reduce transaction costs and share the international seigniorage revenues enjoyed alone by the developed countries.While promoting the process of the cross-border RMB trade settlement can bring many benefits for China, but from another point of view,it will have an important impact on the existing pattern of distribution of interests and do harm to the interests of the United States, the European Union and other countries issuing international currency,leading to conflict between China and countries issuing international settlement currency,and eventually it will lead to game between China and countries issuing international settlement currency.Through the study of the economic and trade relationship between China and Vietnam, this article focuses on the discussion of game on seigniorage revenues caused by settlement of cross-border trade RMB in the trade between China and Vietnam. Because in the settlement between China and Vietnam trade,mostly use US dollars, only a small part use RMB at present, RMB cross-border settlement will make the United States of America lose a part of international seigniorage revenues and make China to obtain the corresponding international seigniorage revenues, triggering a game.Firstly, by estimating the seigniorage revenues, this article analysis the driving mechanism of the game. Secondly, based on discussing the game structure in the game, this article draws a conclusion about the consideration of all interested parties under different game structure. Thirdly, this article analysis the complex process of seigniorage game from the short-term perspective and the long-term perspective.In addition, we should pay attention to many factors which will affect the game, for example, the participants’ comprehensive strength、the currency’s own condition、the currency’s historical inertia、the participants’ attitude and so on. If China wants to win in this game, it is necessary to carry out the corresponding improvement strategy. Fundamentally speaking, China needs to improve its comprehensive strength, in order to improve the support for RMB. At the same time, China should maintain the stability of RMB, steadily promote the RMB convertibility, improve supporting measures are conducive to cross-border RMB trade settlement, and adopt a positive attitude to promote the RMB settlement of cross-border.