The Composition And Empirical Research Of The RMB Internationalization Competitiveness Index

As the economic strength keeps growing, and the economic openness and the degree of marketization in our country gradually get further development, RMB is increasingly used in trade settlement. In addition, the strong value and steady increase of RMB gave to the countries which affected by the financial crisis the hope of stability of the currency, and the international status of the RMB has been a corresponding increase at the same time, thus attracting more non-residents’ demand of the RMB. From trade settlement areas to finance investments areas, the RMB has improved from a currency of surrounding countries to a regional currency or even a international currency; meanwhile, China’s importance in the world economy is also growing. Our government has gradually realized the importance of enhancing the status of RMB in the international monetary system and having a vital place in the international competition. The government learned from the internationalization experience of the dominant currencies in the word, and has been on the road of the RMB Internationalization to explore ahead. From the perspective of the composition and empirical research of index, this paper analyzed the decisive factors of the RMB internationalization competitiveness, and selected indicators as indexes from several aspects of the impact of RMB competitiveness to explore their impact on the competitiveness of the RMB.This paper firstly described the research situation of RMB internationalization and currency internationalization, and focused on the theory of currency internationalization and competitiveness; on this basis, this paper did in-depth theoretical analysis of the decisive factor in the currency of international competitiveness. Next, based on the Vector auto regression, use measurement methods such as impulse response function, Granger causality test, and variance decomposition, to do the composition and empirical research of the RMB internationalization competitiveness index. At last, based on the competitiveness, this paper made relevant policies and recommendations for the RMB internationalization. This paper analyzed and explored the factors of the RMB internationalization competitiveness, and it has some practical significance for the process of the RMB internationalization and the improvement of the RMB competitiveness.