Research On Offshore RMB Demand In The Process Of RMB Internationalization

Since the reform and opening up, China’s position and role in the international arena has always been to improve, Comprehensive national strength has also been greatly enhanced. A lot of trading activities in the world began to use renminbi trading. The influence of RMB gradually deepened, with which China win a high degree of credibility in the international arena. In 2008, the subprime crisis began to take shape in the capitalist world, Then a global economic crisis has been triggered. The international monetary system defects are completely exposed, And the U.S. dollar as the main international currency system was also being questioned from all sides. Grim situation led countries and organizations are beginning to think about how to improve the international monetary system, and proposed an initiatives that international currency should be diversified.With the gradual increase of economic strength, the road of RMB internationalization officially opened. This is not only a trend, but also the inevitable choice of China.In this context, the concept of offshore renminbi needs to be raised gradually, with as an important indicator of their level of economic development and the level of development of RMB internationalization. Explore the factors affecting demand for offshore RMB will help us to fully understand how to steadily push forward the development process of internationalization of the RMB,it also plays a crucial role of grasp the opportunities and developments in the internationalization of the RMB, and identify key issues exist that exist in the development. This paper based on the theory of currency international, From the perspective of exchange rate determination, analyzed the influence factors of offshore RMB with the datas of Hong Kong’s offshore RMB center. Through the statistical analysis methods such asco-integration test and error correction model we can make a point that the main factors affecting the demand for offshore RMB is exchange rate. In addition, money supply and related policies also been the other two main factors produce this effect.On this basis, this paper presents policy recommendations to strengthen the RMB exchange rate regulatory system, to increase the economic structural adjustment, to improve domestic monetary policy system, to prevent excessive currency issue, and to strengthen the RMB internationalization, with which we can gradually raise the RMB’s international status.