RMB Cross-border Settlement Of China-burman Based On The Valuation Currency Selection Theory Of International Trade

Since the opening to the outside of world in 1998,Myanmar has maintained a good trade relationship with China for a long time,China now has become the largest trade partner and investment source country in Myanmar.China's exports trade to Myanmar amounted to 8.19 billion and imports about 4.1 billion in 2016,and direct investment to Myanmar is up to 332 million dollars in 2015.As the cross-border settlement pilot been carried out in the domestic key cities and Yunnan province from 2009 to 2010,China and Myanmar's amount of trade settlement and investment flows have maintained a high growth rate.Only in Dehong state of Yunnan Province,the amount of RMB cross-border settlement is more than 12 billion yuan in 2014.In the Sino-Burmese border trade area,the RMB has become a freely convertible currency,it is circulating in the daily life of the border people,and banks in the northern provinces of Myanmar can handle RMB settlement business work,the local government also use RMB to pay wages,RMB in Myanmar now has been showing quasi-peripheral development trends.The thesis systematically analyzed the current situation and significance of promoting the RMB cross-border settlement between Sino-Burma,and according to the Currency choice theory of international trade and combined with the reality of cross-border settlement development,to analyzed the important factors influencing the RMB cross-border settlement of China-Burma.On this basis,the article constructed of multiple linear regression equation,and used principal component analysis method to establish the long-term equilibrium relationship between RMB cross-border settlement level and its influencing factors.The results of measurement test show that the scale of trade and currency stability are the most important influencing factors of RMB cross-border settlement level,its regression coefficient were 0.414?1.592,the current level of financial market's development has hindered the bilateral RMB settlement business,and the commodity heterogeneity has a significant positive correlation with cross-border RMB settlement level,the impact of domestic consumer price index fluctuations on bilateral cross-border RMB trade settlement level's value is-8.128.Therefore,the article proposed regulatory measures that to continually consolidate Sino-Burmese investment and trade cooperation,and improve the trade structure of the two countries,to build Sino-Myanmar RMB cross-border settlement service center,regulate the street bank,strengthen the flow of funds both inside and outside of country,in order to accelerate the liquidation function of RMB in whole Myanmar as settlement currency,and provide reference to carry out RMB settlement business for China and neighboring countries.