An Analysis Of The Relevance Between Capital Account Opening And RMB Internationalization In China

The internationalization of RMB brought about by the continuous development of China's economy is the trend of the times.Research and exploration on this issue has also been continuously valued.How to promote the development of RMB internationalization has become the focus.Therefore,scholars have carried out a lot of research on this issue from both qualitative and quantitative aspects.However,from the perspective of empirical analysis,most of the research on the internationalization of the RMB is based on trade.Especially in the current state of internationalization of the RMB,China is striving for pricing power to promote the renminbi country in the process of trade with neighboring countries.Chemistry is a very critical step.Despite the continuous expansion of China's trade in these years,China's trade structure has led us to lack the power to price imported and exported goods.At the same time,China's imports are mostly based on advanced technology,and we are less likely to seek pricing power.Therefore,it is inconsistent to study the internationalization of the RMB from the perspective of trade and to promote its development in China.Through observations of countries and regions with high degree of internationalization of currencies,such as the United States,Japan,Germany,and the Eurozone,we can find that capital account opening plays an important role in the process of currency internationalization in these countries and regions,and nowadays These countries also have a high degree of openness in capital projects.In comparison,China's capital projects have a certain degree of control,which is likely to restrict the development of China's RMB internationalization.Since 2009,China has accelerated the construction of RMB cross-border trade settlement and the construction of the offshore RMB market,which has gradually expanded the use of RMB.In this case,the importance of promoting the opening of capital projects has become increasingly prominent.However,while we are paying attention to the benefits brought about by the opening of capital projects,we should also pay attention to the openness of capital projects,which should be controlled,open and gradual,and there are many risks if the capital projects are completely deregulated.Therefore,China should steadily promote the opening of capital projects and the development of RMB internationalization.Based on the previous research,this paper analyzes and discusses the correlation between capital project opening and RMB internationalization by qualitative and quantitative methods.Through Eviews software,the degree of RMB internationalization is used as the explanatory variable and the degree of openness of capital projects as explanatory variables.The main factors affecting the internationalization of RMB are selected as the control variables for cointegration regression,which focuses on the analysis of capital project opening and RMB internationalization.The relationship shows that the opening of capital projects can promote the development of RMB internationalization and provide an empirical analysis basis for further opening up China's capital projects.Finally,it puts forward policy recommendations for the opening of China's capital projects and the development of RMB internationalization.This paper mainly proposes that we should coordinate development and adapt to each other,so as to promote the further opening of capital projects reasonably,and then accelerate the development of RMB internationalization.