Research On The RMB Internationalization In The Perspective Of Offshore Market

The outbreak of the 2008 global financial crisis and the ensuing debt crisis in Europe and the United States has made countries suffer a major blow. It also fully exposed the inherent contradiction of the current USD-dominated international monetary system. The reform of the international monetary system is urgently needed. As the second economic entity in the world with the largest trade volume and overseas exchange reserves, China has exhibited its powerful economic strength and growth potential to the whole world. The RMB internationalization is beneficial for China to further enhance its international influence, and it has become one of the hot issues which domestic and overseas experts and scholars concerned. In the role of both international and domestic factors, the RMB internationalization has taken a solid step and made remarkable achievements in the settlement of cross-border and offshore markets. Based on China’s current financial development and domestic financial policy constraints, as well as the the position of RMB in trading settlement around, a more reasonable selection in path to promote the internationalization of the RMB is relying on offshore financial markets.By sifting through Chinese and overseas literature, this thesis firstly reviews the connotation, conditions, costs and benefits of the currency internationalization and relevant theory about offshore financial market, and sums up the relations between them. Then it details the latest progress of RMB internationalization and the problems and challenges it faces. Next, this thesis comprehensively contrasts and analyses the development process, the present situation and the advantages and problems of RMB in Chinese Hong Kong, Singapore, London and other major offshore markets, accumulating relevant experience of the offshore financial market to promote RMB internationalization. Finally, by constructing the multiple linear regression equation and selecting relevant indicators affect the internationalization of RMB for empirical analysis, it confirms that the offshore financial market has a positive role in the RMB internationalization. And then, this thesis puts forward specific policies and suggestions from the perspectives of perfecting and developing the construction of RMB offshore market in Chinese Hong Kong, promoting the global layout of the RMB offshore markets, and improving the RMB repo mechanism and risk management mechanism.