A Research On Influential Factors Of RMB Cross-border Settlement

After China's accession to the World Trade Organization,its economic strength has steadily increased.At present,China has become the world's second largest economy.The scale of China's trade has also continued to grow.In 2017,China's total foreign trade volume was 21.29 trillion yuan,an increase of 14.4% over the previous year.In 2016,the total amount of cross-border RMB receipts and payments was 9.85 trillion yuan,accounting for 25.2% of the foreign currency cross-border receipts and payments during the same period.The RMB has become China's second largest cross-border payment currency for six consecutive years.However,in today's international financial and currency markets,the market share of the RMB is only 1.68%.The RMB has not been widely used in international trade and offshore financial markets.It is incompatible with China's second-largest economy and huge international trade volume.It is imperative to promote the internationalization of the RMB.Therefore,it makes sense to study the factors affecting cross-border RMB settlement.In view of this,this article mainly analyzes the factors that affect the scale of cross-border RMB settlement.Firstly we analyze the status quo of China's cross-border RMB development,development history,structural status,regional distribution and RMB return channels;secondly,from the qualitative and quantitative perspectives,the factors that affect China's cross-border RMB settlement conduct the analysis.On the other hand,from the quantitative level,we select two data indicators for Hong Kong offshore RMB deposits and RMB monthly average exchange rate.This paper adopts unit root test,cointegration test and least squares method for quantitative analysis.Empirically verify the impact of the two data indicators on China's cross-border RMB trade settlement.Finally,based on the quantitative and qualitative analysis of the factors affecting the scale of cross-border RMB settlement,a reform plan to promote cross-border RMB settlement is proposed.In order to further promote the internationalization of the renminbi and increase the scale of cross-border renminbi settlement,the development countermeasures to promote cross-border renminbi settlement are proposed.The measures to promote the development of cross-border RMB settlement mainly include strengthening the construction of the offshore RMB market in Hong Kong,maintaining the stability of the exchange rate,improving the competitiveness of China's products,improving the construction of RMB settlement systems and supporting facilities and promoting the cross-border development of China's borders with neighboring countries RMB settlement scale.