The Influence Study Of Offshore Financial Market Development To A Country's Currency Internationalization

In contemporary monetary system,the United States with its strong economic strength and the strong position of the dollar,could spread its financial crisis to the world,bringing about global economic instability.Most countries are aware of this and trying to diversify their currency reserves to reduce the risks.As the second largest economy in the world,China will inevitably put the internationalization of RMB as a long-term strategic measure in the future.However,under the condition that China's capital account is not fully open,how to promote the internationalization of RMB effectively?The development of offshore financial market of RMB will be an effective measure.The main contents of this paper are as follows:First of all,theoretical proof of the positive influence of offshore financial market on the internationalization of a country's currency.Secondly,through the empirical analysis of the role of offshore financial markets in the process of currency internationalization in the United States,Japan and the United Kingdom,this paper demonstrates that offshore financial markets play a positive role in the process of currency internationalization.And then,based on the historical data of the United States,Japan and the United Kingdom,this paper makes a quantitative analysis of the relationship between the size of offshore financial markets and the degree of currency internationalization by using panel data model.Through theoretical,empirical and quantitative analysis,this paper concluded that the development of offshore financial markets has a positive effect on the internationalization of a country's currency.Finally,according to the current situation of the RMB offshore financial market,drawing on the advanced experience of other countries,this paper puts forward relevant suggestions on how to play the role of the RMB offshore financial market to promote the internationalization of the RMB.