Cross - Border Trade Settlement And RMB Internationalization

With China’s increasing economic growth as well as the rising status in the worldeconomy, the internationalization of RMB has become the focus of global attentionincluding China itself. However, the international status if RMB is not consistent withits economics status. Currently, many other countries’ demand for RMB isincreasingly expanding. The amount of RMB used in border trade with neighboringcountries has also increased.Promoting cross-border trade RMB settlement is a very important step in theprocess of internationalization of the RMB. Its implementation and development of itwould have a profound impact of the the future process of internationalization ofRMB. Firstly, this paper sort out theoretical research on currency internationalizationand cross-border trade settlement and other aspects. On this basis, the paper focuseson those characteristics and problems of cross-border trade RMB settlement, as wellas how to promote RMB internationalization through cross-border trade RMBsettlement under the background of implementation of China’s “One Belt and OneRoad” strategy.This paper is divided into five parts as follows. The first part is the introduction,mainly elaborating background and significance of the internationalization of RMB,and introducing cross-border trade settlement research at home and abroad, at thesame time pointing out the research ideas. The second part is the basic theory ofinternationalization of the RMB, mainly presenting on international monetary theoryconnotation, conditions and metrics, elaborating related concepts and theories aboutsettlement currency of cross-border trade. The third part is about those achievementsof cross-border trade RMB settlement, elaborating its history and current situation ofcross-border RMB trade settlement as well as the basis of cross-border RMBsettlement. The fourth part analyses those characteristics and problems ofcross-border trade RMB settlement, describing the current characteristics of the RMBsettlement of cross-border trade, which help analyze the resulting problems and the current limitations. Finally, the last part is to propose policy recommendations forcross-border trade settlement and also the internationalization of the RMB. To beginwith, from the perspective of geographical and functional level, this part analyses howcross-border trade RMB settlement promotes internationalization of RMB, followedby proposals for cross-border trade settlement and how to better promote RMBinternationalization.