Research On RMB Cross-border Circulation And Crossborder Settlement

The essence of the RMB cross-border circulation is the RMB internationalization. Under the accelerating trend of global financial integration, and with the strength of Chinese economic, RMB begin to cross the border,more and more residents and enterprises are willing to hold RMB and chose it as the currency of settlement in international trade and investment. In order to expand the scope of the RMB cross-border circulation, the government launched of RMB cross-border trade settlement in 2009. And with the expansion of the RMB cross-border circulation, the motivation that foreign residents and enterprises use RMB to settlement is increasing. Obviously, as important parts of the RMB internationalization, the RMB cross-border circulation and the RMB cross-border have a close relationship. Whether the two affect each other and how the degrees of influence are needed to pay close attention. To solve the problem, the article mainly uses empirical methods to research.The first chapter first elaborates the background of the article and points out that the cross-border RMB circulation and the RMB cross-border settlement have a significance effect on the RMB internationalization. Second this chapter discusses research findings written by scholars at home and abroad and these provide theoretical foundations for the empirical study of the second and third chapter. At last, the article designs the framework and points out innovations and shortage of the paper.The second chapter first introduces the basic situation of the RMB cross-border circulation and makes analysis of the reasons and channels about the RMB cross-border circulation. Second the article analyses the relationship between the RMB cross-border circulation and the RMB internationalization. At last, the paper estimates the size of the RMB cash cross-border circulation from January 2012 to December 2014 by use of Eviews6. The scale plus the number of RMB deposits in Hong Kong and Macao are the entire scale of the RMB cross-border circulation.The third chapter first studies the current situation of the RMB cross-border settlement and analyses the factors affecting the RMB cross-border settlement by use of SPSS 20. After analyzing outcome, the article get a conclusion that at present, the increase of current exchange rate, import and export trade is still the most important factor affecting crossborder RMB settlement growth, but the RMB cross-border circulation’s impact on the crossborder cannot be underestimated.Based on the second and third chapter, the forth chapter researches the relationship between the RMB cross-border circulation and the RMB cross-border settlement deeply, through Granger causality test, the article get a conclusion that the RMB cross-border circulation and the RMB cross-border settlement influence and promote each other, but the degrees of influence between the two are different. According to the outcome of impulse response function, it shows that the increase of the amount of the RMB cross-border circulation has a positive and more prominent effect on the rising of the size of the RMB cross-border settlement and this effect is rapid and lasting. At last of this chapter, the paper analyses the reason of this result.Based on the outcome of the fourth chapter, from the perspective of how to promote the RMB cross-border, the article puts forward policy recommendations about national policies, regional construction and banking.