The Impact Of RMB Currency Swap On Bilateral Trade

In recent years,with the ever-increasing comprehensive national strength and the further optimization of its foreign trade structure of China,the demand for RMB settlement in cross-border trade has become higher and higher.Currency is a symbol of national sovereignty and an important symbol of the rise of a country.After the financial crisis in 2008,China began to promote the signing of the RMB currency swap agreement actively.The RMB currency swap agreement has been widely recognized all over the world.It also provides conditions for the establishment of relevant offshore RMB markets and RMB cross-border settlement center.The purpose of this paper is to study what effect does the signing of the currency swap agreement have on bilateral trade.First to sum up whether the signing of a currency swap agreement will have a catalytic effect on bilateral trade,and the related theories of studying the mechanism of bilateral trade in currency swaps and currency swaps,it follows that the currency swap agreement does have an impact on a country's import and export trade.Then,by analyzing the status of the signing of the currency swap agreement after 2008 and the status of bilateral trade,we will provide support for interpreting the empirical findings.This article improves the classical trade gravitation model,adds explanatory variables such as currency swaps,exchange rate and FTA,based on the expanded model,we made an empirical test of the impact of currency swaps on trade between China and 36 countries and regions,and further studied the different roles of currency swaps in developed and developing countries.Since the signing time of the currency swap agreement is short,this paper uses quarterly data to return the model.The empirical results show that the currency swap agreement has a significant promoting effect on bilateral trade between China and foreign countries,and it has a stronger promoting effect on trade among developing countries than developed countries.