Issues And Countermeasure Of RMB Cross-Border Trade Settlement

Since the 2008 financial crisis, the Fed launched a four-wheel quantitative easing monetary policy, the fluctuation of dollar exchange rate which not only increased the risk of exchange rate of foreign trade enterprises of China but also let the foreign exchange reserves to suffer huge losses. China has become second largest economy and the world’s largest goods trading nation, but the RMB’s share of global market payment is only2.17%, the RMB’s internationalization is imminent. RMB internationalization is divided into three phases, the RMB cross-border settlement is the first and most important stage of RMB’s internationalization. July 2009, the People’s Bank of China jointly issued by six ministries, "cross-border trade, the RMB settlement pilot management approach", launched cross-border RMB settlement business. After five years of rapid development, in 2014,cross-border trade in goods, services, trade and other current RMB settlement of foreign direct investment, foreign direct investment totaled 5.9 trillion yuan, 656.5 billion yuan,186.6 billion yuan, 862 billion yuan. Although the rapid development of cross-border RMB settlement business, but in the course of its development has also exposed a series of problems.This paper is divided into four parts to carry out research. The first part is the introduction, describes the background and significance of the RMB cross-border settlement, the research of the internationalization of the RMB and RMB cross-border settlement, innovation of this research method and article of the deficiencies. The second part is the theory of RMB cross-border settlement, including currency denominated monetary theory of competition and choice theory to explain a country’s currency as an international currency needed for people to choose denominated monetary conditions and criteria, and on cross-border settlement of RMB to China’s government and the economic benefits of foreign trade enterprises were analyzed. The third section describes the current situation and the RMB cross-border settlement of the problems faced. Elaborated from three aspects: the presence of offshore RMB appreciation expectations and less stock, the RMB payment imbalances, import cover much larger than the export earnings; As China’s financial markets are underdeveloped and capital controls, the yuan is not smooth flow channels; tradition Network externalities of the international monetary constraints to carry out cross-border RMB settlement business. Section fourth presents recommendations on issues facing the RMB cross-border settlement include: the expansion of currency swap mechanism to accelerate industrial upgrading, sudden interest rate and exchange rate market-oriented reforms, relaxation of capital controls, and promote the development of China’s financial markets and to continue to support Hong Kong’s offshore RMBdevelopment of the market.