Research On Monetary Anchor Of RMB In Regional

Since the establishment of the gold standard so far, the world’s monetary system has undergone several changes, while the economies of many countries have begun to actively explore and rational international monetary system. Currently, most countries have adopted reference exchange rate adjustment mechanism pegged to a basket of currencies. And with the steady growth of China’s economy in recent years, rising comprehensive national strength, and the Chinese government show the responsibility in the crisis. Therefore, the real significance of the research in different areas of the economy in the RMB and the different time periods in the degree of monetary anchor has a crucial consideration the performance of China’s future economic development direction of the RMB exchange rate mechanism.From a practical perspective, China’s continued economic strength, open financial markets continue to advance, the RMB cross-border trade settlement growth, can be roughly inferred RMB currency anchor effect has in growing. But look at the literature, most scholars focus on the RMB currency anchor effect in East Asia, rarely comes to the area outside East Asia, including the latest data have not yet studied the effect of the RMB currency anchor in different currencies in the regional economy expression. In this paper, based on previous literature combing, first summarizes the features of the existing monetary anchor, and then turn the RMB into an economic basis for monetary anchor detailed qualitative analysis. First we introduced to the analysis of the existing international monetary system and defects, and a description of the status of the RMB in the current monetary system. Secondly, we describe the trading and investment between China and other countries. RMB is used as a reserve currency in these areas economies. At last, we believe that the RMB has been become the anchor currency.On the basis of qualitative analysis, this paper uses regression equations and SVAR to empirical the monetary anchor effect of the RMB in the various regional economic communities. By using regression methods and SVAR to the study the RMB anchor effect. Finally, the empirical results among different regions, different time periods, with regional comparative analysis between different countries, draw anchor effect RMB in Asia is still significant, and influence with the recent developments are increasingly increase. In addition, although the RMB currency anchor effect in Europe, Latin America, Africa and other regions, did not exist universal, but the results we found in these regions, the existence of the country close trade with China, China in its currency basket The weight ratio of generally larger.Thus, according to the empirical conclusion, this paper suggests the RMB in order to promote enhanced anchoring effect and influence, China should strengthen economic and trade within regions; continue to expand cross-border RMB trade settlement business; further deepen the exchange rate regime and the domestic financial system reform, optimize the structure of the domestic economy, provide a good financial environment.