Analysis On The Influencing Factors Of RMB Internationalization

The outbreak of the US subprime mortgage crisis in 2008 swept through a number of economies,leaving the international community dissatisfied with the current international monetary system.During this period,the United States introduced quantitative easing policy,resulting in the shrinking of China's foreign exchange reserves,but our government has adopted RMB trade settlement pilot and currency swap measures,effectively responded to the crisis,improve the international status of the renminbi.Trump pursued a trade protection policy in 2017,and a long-term US current account deficit could weaken the international community's confidence in the dollar.China,on the other,is looking at the world in new ways,such as the Belt and road,to push the renminbi into more areas.However,at present,the international level of RMB is still low,and China's economic strength,trade scale is among the highest in the world,so the emergence of such a situation,and theoretical analysis and the real history of international currency such as the United States dollar,and the intensification of global trade friction,It makes it more difficult to promote the internationalization of RMB simply by relying on the expansion of trade scale.Therefore,from the point of view of trade structure,this paper analyzes its relationship with currency internationalization.The theoretical analysis carried out in this paper has defined what constitutes international currency,currency internationalization and trade institutions,and then the theoretical analysis of the choice of pricing currency shows that in a country's export commodity structure,if the product is mainly differentiated,the country's products in the international market is less replaceable,will be able to obtain a greater initiative to choose their own currency as the valuation,settlement of the currency,so as to promote the internationalization of the national currency.At the same time,the paper also discusses the influence of economic strength,financial strength,currency stability,trade scale and capital account opening on the internationalization of a country's currency.In view of the difference between the actual situation in China and the actual situation of the international currency issuers,so as not to create errors in the empirical results,the paper first analyzes the role of the trade structure in the internationalization of the United States dollar,the euro,the Japanese yen,the pound sterling and the Swiss franc through the panel,and the results show that Shows that a country's currency is more easily accepted by international markets if it is dominated by commodities with a high degree of export differentiation.At the same time,economic strength,trade scale,financial strength and capital account opening are all changing with the level of monetary internationalization,and the fluctuation degree of exchange rate is in reverse change,and the inflation rate has no significant effect on currency internationalization.Then,the paper makes a least-squares return to the RMB,and finds that China's trade structure,economic strength,financial strength and capital account opening still affect the internationalization level of RMB,but the trade scale and exchange rate fluctuation have a reverse impact on the internationalization level of RMB,but the inflation rate has no significant impact.Based on theoretical and empirical analysis,this paper puts forward some suggestions on perfecting China's export trade structure,striving for international commodities denominated in RMB,gradually liberalizing China's financial market and perfecting the financial supervision mechanism.