The Impact Of “One Belt One Road Initiative” On The RMB Internationalization

Since China's reform and opening up,its economic strength has increased rapidly.In 2001,after China joined the WTO,it has grown at a high speed.This proves that China's strength has been recognized by all countries in the world,which fundamentally changed China's economic environment.First,after the accession to the WTO,more than 100 countries of the World Trade Organization have given China the most favorable import and export treatment,which is conducive to China's participation in international trade rules decisions under more equal conditions,and can also reduce discrimination in major foreign trade countries.Greatly improved China's position in the world.Secondly,joining the WTO means that China's trade market and financial market are in line with international standards,opening up in all directions and at multiple levels,which is conducive to China's absorption of foreign investment and employment opportunities for our people.In the true sense,China has realized the economic transformation of “going out”;finally,the reduction of trade tariffs,foreign foods entering the domestic market,forming a benign price competition with domestic products,improving people's living standards,and making ordinary people get bigger.Affordable.But we said that this is also a double-edged sword.The joining of the WTO is also a huge challenge for China.If China cannot continue to make progress,it will not keep up with the pace of the world and be embarrassed by the big powers.In 2013,China proposed the “Belt and Road Initiative”,which aims to open a door in the central and western China and open a way to connect trade markets and financial markets in West Asia and Europe,and establish a cross-regional openness.Sexual framework.Through this road,we can promote the rapid transfer of eastern industries to the west,accelerate the industrial transformation in the eastern region,and promote the economic development of the central and western regions throughinfrastructure construction and the output of the central and western regions with excess capacity.This has not only improved the imbalance of China's economic development,but also increased the use of the renminbi through such regional trade,enabling it to occupy an important position in the countries along the “Belt and Road”,regionalization of the renminbi and even RMB international.Spread the road.The internationalization of the renminbi means that the renminbi has crossed the border and can play its three major functions internationally.A basket,as the name implies,is a currency index that re-forms the currency of an important trading country according to the share of trade in the world.This means that the renminbi is highly recognized in the world,the international status of the renminbi is rising,and the internationalization of the renminbi is no longer the "possible" direction of scholars in the last century.As of 2018,China has become the second largest economy,and the status of the renminbi has increased in the international arena.However,the degree of internationalization of the renminbi is not as optimistic as we think.The promotion of renminbi internationalization is still urgently needed things.This paper first analyzes the influencing factors of RMB internationalization,and finds that economic strength,trade and investment strength,and monetary system can all influence the internationalization of the RMB.Secondly,the author finds that the “Belt and Road” construction helps by studying the “One Belt,One Road”initiative.In order to increase the activity of regional trade,increase the scale of China's foreign trade and total foreign investment,the credibility of the renminbi will gradually increase,thereby expanding the cross-border trade settlement business of RMB and the overseas investment business of RMB,and enhancing the credibility of the renminbi.At the same time,China's stable exchange rate has stabilized the value of the renminbi,increased the willingness to hold the renminbi,expanded the exchange of foreign exchange reserves and renminbi foreign exchange derivatives in the region,strengthened the liquidity of the renminbi,thereby accelerating the development of China's financial market and accelerating the international renminbi.Once again,the “Belt and Road Initiative” is closely linked with the internationalization of the RMB,and the actual factors affecting the two are analyzed theoretically.Finally,an empirical model is established,and the most representativecountries are selected according to the geographical location.Relevant data,and compare it with countries along the “Belt and Road” to draw conclusions and make policy recommendations.