Research On The Impact Of Exchange Rate Fluctuations On The Internationalization Of The RMB

With China's economic strength,China's status in the world has been rising,China's intertnational trade and capital exchanges,are going to an increasingly important stage.As a medium of international cooperation,RMB is becoming more and more important,and the internationalization of RMB has become the focus of people's attention,At the same time,due to the 2015 "811" exchange rate reform,Chinese exchange rate system has made great reform,such changes,with a series of effects,also affect the internationalization of the RMB,attracting people's attention.Of many factors in the internationalization of the RMB exchange rate fluctuations,is one of important factors.We naturally want to combine the two,look at the relationship between the two,in order to put forward some suggestions to promote the process of internationalization of the RMB to play a role.In the first part of the article,the author discusses how the influence factors of currency internationalization influence the currency internationalization.Then focus on the exchange rate fluctuations.The impact of exchange rate fluctuations on the capital market and international trade will be indirectly transmitted to the internationalization of the currency.Therefore,this article will elaborate the influence of exchange rate fluctuations on the capital market and the impact of exchange rate fluctuations on international trade.From the perspective of history,this paper studies the influence of currency exchange rate fluctuations on the currency internationalization.This paper selects Mark,yen and euro as a reference currency,the different stages of the three currencies in the international experience is discussed in this paper,combined with the corresponding period of the exchange rate,which is intuitive and truly show the impact of exchange rate fluctuations in the monetary internationalization.To provide a reference for the internationalization of RMB.The empirical analysis focuses on the effect of exchange rate fluctuations on the internationalization of RMB.In this paper,the internationalization of the RMB as explanatory variables,the exchange rate fluctuations as explanatory variables,the economic strength and the development of financial market,and inflation,interest rate as control variables,quarterly data from 2003Q1-2015Q2 China market,establish econometric model.The study found:have a greater positive impact China economic strength degree of RMB internationalization,financial market development index has a significant positive effect on the internationalization of the RMB exchange rate fluctuations,while the explanatory variables have a significant negative impact on RMB internationalization.This conclusion is basically consistent with the reality of the expected exchange rate fluctuations in the currency that the higher the risk of holding,will weaken the confidence of the market for the currency,is not conducive to the internationalization of high currency.Finally,the empirical research results for reference,this paper puts forward some policy suggestions,that Chinese should be based on economic development,in order to maintain the exchange rate for the premise,improve the RMB exchange rate system,strengthen and improve the financial market,and improve the stability of monetary policy and increase Chinese international status,in order to gradually promote the internationalization of RMB.