Research On Developing RMB Settlement Business Of Cross - Border Trade In Jiangsu Province

It was clearly proposed in the National Twelfth Five-Year Plan that China will expand the role of RMB in the cross-border trade settlement and investment. The People’s Bank of China launched pilot works in RMB cross-border trade settlement in2009, the pace of the RMB’s going out is continuously accelerated. In August2011, a Notice on Extending Geographical Coverage of Use of RMB in Cross-border Trade Settlement was jointly issued by The People’s Bank of China, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation and the China Banking Regulatory Commission, which specifies enterprises in Hebei, Shanxi, Anhui, Jiangxi, Henan, Hunan, Guizhou, Shaanxi, Gansu, Qinghai and Ningxia provinces and autonomous regions can use RMB in cross-border trade settlement.Thus, geographical coverage of cross-border trade settlement in RMB is extended to entire nation.Since the pilot project started in Jiangsu Province from June2010, the RMB cross-border trade settlement business in Jiangsu has covered13cities, involving31banks,1,518companies and58overseas countries and regions. However, accompanying the rapid development of the business, while the lack of relevant rules and regulation, clear business operation guideline and sound regulatory and supervisory system, to some certain extent, has become the restraining factors to the development of RMB cross-border settlement business in Jiangsu Province.How to further develop RMB in Cross-border Trade Settlement business and guide the foreign-related companies to use RMB as trade settlement to avoid the RMB exchange rate risk? It has become not only a theoretical research but also a realistic measurement to improve the level of open economy, and promote sound and rapid economic development in Jiangsu.This thesis comprehensive explicate the current situation of pilot business and the development of RMB Cross-border Trade Settlement business in Jiangsu. In the meanwhile, pointing out the problems in the aspects of regulatory and service concerning RMB cross-border trade settlement in Jiangsu Province, and proposed some policy recommendation and practical measures.This thesis first describes the basic connotation of RMB Cross-border Trade Settlement and the related theories, and reviewed and summarized the practice of RMB Cross-border Trade Settlement in Jiangsu Province, then analyzed the course of currency internationalization of some major foreign currencies; Finally, the thesis proposed some strategies and countermeasures to develop RMB Cross-border Trade Settlement in Jiangsu Province.By using analytical method of the combination of history and reality, the thesis reviewed and summarized the experience and limitation of RMB Cross-border Trade Settlement carried out in Guangdong and Shanghai in the first phase of pilot project, which offered the profile and reference to the RMB Cross-border Trade Settlement in Jiangsu. The thesis apply standard analysis approach to analize and determine the characteristics of RMB Cross-border Trade Settlement carried out in the different provinces, also apply empirical study method to investigate the development status of the RMB Cross-border Trade Settlement in different district. Referring a lot of theoretical documents and bibliography, the thesis futher extended and developed its content, raised some problems in the aspect of sevice and supervison of the RMB Cross-border Trade Settlement in Jiangsu, and made some pointed proposal and measures to the policies.