Research On Impact Of RMB Settlement Of Cross-border Trade On China’s International Trade

With our comprehensive national strength rising, more and more enterprisesparticipate in international trade, but they usually adopt the U.S. dollar or otherforeign currency for settlement, which is not equal with the current internationalstatus. Whatever, as dollar’s exchange rate fluctuations caused a tremendous impacton China’s economy after the financial crisis, people call the RMB as the settlementcurrency. In2009, China launched the policy of RMB settlement of cross-border tradewhich develops rapidly from the implementation. The scale of settlement accounts ofChina’s total international trade continue to increase.Recently, scholars began to study RMB settlement of cross-border trade indifferent aspects, but almost in qualitative analysis. This paper will analyze the impactof RMB cross-border trade settlement on China’s international trade in quantitativeview. First, summarizes the related theories which will help the following analysis.Then, we analyze the business development status quo, the exiting problems and theimpact on international trade. And then, select the import and export scale and exportcompetitiveness index as the indicators to establish VAR model and OLS model toresearch the impact on international trade, while the date is from the fourth quarter of2010to the fourth quarter of2014. Results show that, the RMB settlement ofcross-border trade has a long-term stable relationship with import and export scaleand export competitiveness index, and can promote the international trade to develop.But the promotion is still relatively small, and it will be more significant. Finally, wewill combine theoretical with empirical results to put forward some policy suggestionsin three aspects about government, financial institutions and enterprises on how tohelp business develop, and promote the prosperity of international trade.