Study On The Back-flow Mechanism Of RMB

In recent years, Chinas has maintained a strong and steady economic growth. Based on the high international status of the country, the RMB has also got an increase on status. With the speeding-up of the internationalization of the RMB, the imbalance of its cross-border flow appeared, which has caused reflections on the back-flow mechanism of RMB. Although the government has carried out a few channels in order to guide the back-flow of RMB, we can find that the mechanism was not smooth.This article first discussed the dynamic mechanism of the internationalization of RMB, it’s the cooperation of government forces and market forces that promote the internationalization of RMB. Through the analysis of the status of RMB internationalization, we found that the RMB presents the imbalance of inflow and outflow, because the backflow mechanism is not smooth. Then, this article established an effective model of estimate the offshore RMB scale. Base on this estimation, the article introduced the present situation of the main backflow channel systematically, and made a conclusion that the main channel is still the cross-border trade settlement.This article focused on the problem of RMB backflow mechanism, respectively, from the time dimension, space dimension and the temporal spatial fusion to explain how to construct the RMB backflow mechanism, in order to promote the internationalization of RMB. Then it pointed out that the control of capital account, the exchange rate formation mechanism, the uncompleted market-oriented interest rate reform are the key factors that restricted current RMB backflow mechanism. Learn from the experience of the dollar, euro and yen, combined with the actual RMB backflow status, this article stated that we should focus on the opening of bond investment and RMB FDI to promote the RMB backflow mechanism. Finally, this article, put forward made some suggestions to improve the RMB back mechanism, respectively from the real economy, virtual economy and policy support angle.