Research On The Affecting Factors Of RMB Settlement In Chinese-laos Cross-border Trade Based On The RMB Internationalization

1997 Asian financial crisis hit Asia economy.And because of the stability of the RMB,China also was known as a responsible country.The influence of the financial crisis in 2007 around the world,make people begin to reflect on the international monetary system dominated by the dollar,consider the important role of the diversified international monetary system to alleviate world economic turmoil.So China caught the opportunity of the impact of the financial crisis against the dollar around the world and accelerate the process of RMB internationalization.The advancement of RMB internationalization which was dominated by the policy has made remarkable achievements,but the RMB recognition degree is also low in the surrounding countries,with small settlement amount.So RMB internationalization is still at the primary stage of currency internationalization in terms of cross-border trade settlement stage.This Thesis begin with Chinese-Laos cross-border RMB trade settlement,explore the problems arising from the cross-border RMB trade settlement business and its influencing factors,and put forward the corresponding suggestions according to the problems,so as to realize China and Laos and even the sustainable development of cross-border RMB trade settlement business around the world,eventually make RMB internationalization process toward a higher stage.Based on the characteristics of the international monetary and cross-border trade settlement monetary,the thesis introduces the development situation of RMB internationalization and cross-border RMB trade settlement business.Then this thesis points out that the business of the informal financial institutions,the RMB settlement size shrinkage and the imbalance in the structure of balance of payments problems according to cross-border RMB trade settlement business between the two countries.And according to the international trade settlement currency choice theory,this thesis qualitatively analyses the factors of the dollar strengthened,the output flow channel is not sound,Chinese-Laos trade product heterogeneity and settlement currency use inertia as its influence on Chinese-Laos cross-border RMB trade settlement business.Then the thesis quantitatively analyses these affecting factors by building the VAR model,such as the feature of the RMB stability and China's financial market development degree.Finally,according to the above research,in order to solve business problems,this thesis argues that China should mainly strengthen exchanges and cooperation with the Lao government,perfect the RMB cross-border payment system,continue to deepen reform of Chinese financial markets as the breakthrough point.