Research On The Impact Of Offshore RMB Market Development On RMB Internationalization

From the 811 Exchange Rate System Reform in 2015 to June 2017,under the situations that the RMB against the U.S.dollar began to appear two-way fluctuations and China strengthened the supervision of capital outflow and so on,the market sound to promote the internationalization of the renminbi gradually weaker.Offshore financial market construction also slowed markedly compared to the previous.After the financial crisis in 2008,the world’s voice on the reform of the monetary system has gradually become higher.The use of renminbi in the overseas gradually increased,and the gradual internationalization of the renminbi began to arouse concern at the same time.Since 2009,China has gradually promoted the internationalization of RMB by promoting cross-border trade and investment in renminbi settlement,encouraging the construction and development of offshore renminbi market,and signing bilateral currency exchange agreements with other central banks.However,whether the establishment of the offshore renminbi market can accelerate the renminbi internationalization,and to what extent to promote the internationalization of the process?These problems have aroused people’s wide attention.Some scholars have made a qualitative analysis of this,but no agreement has been reached.It has not been verified and supported by empirical research that the rationality and effectiveness of the international currency function is promoted by using the institutional advantages of offshore financial market.In the research perspective,the article takes the development of the offshore RMB market as the main cut-in point.Based on the theory of currency internationalization and offshore market formation and operation,the influence on the offshore RMB market to RMB internationalization was teased.The paper sums up the influence mechanism of offshore market on the internationalization of local currency from the transaction media,accounting unit,Value storage and other three perspectives,and verifies it in the empirical level.In the empirical method,the article has increased the international bond ratio index compared with the International reserve Ratio index adopted by most scholars,which can reflect the internationalization degree of the currency comprehensively.The results show that promoting the development of offshore market is helpful to enhance the functions of RMB’s trading medium,valuation and value storage function,and the fluctuation of exchange rate has a significant negative effect on the function of currency valuation,settlement and reserve.Based on the results of this study,this paper puts forward some suggestions based on the present situation of RMB internationalization and current offshore market construction.The suggestions as followed:First of all,to put forward a sound financial infrastructure to enhance the trading scale of RMB;Secondly,to build commodity renminbi valuation system to promote the pricing function;Finally,to promote the RMB investment and foreign exchange reserve functions and other suggestions with the help of "all the way".This paper is to provide little reference for promoting the offshore renminbi market and RMB International monetary function to deepen.