Research On The Influencing Factors Of RMB Internationalization Under The Background Of "One Belt And One Road"

The severe reality of the global financial crisis shows that the global settlement system based on one country’s currency is certainly unstable and unreliable.One of the core issues that need to be reformed is the choice of local currency as the basis of international reserve.Although China has become the second largest economy in the world,RMB is still not high in international trade valuation,settlement and international foreign exchange reserve.Therefore,promoting RMB internationalization has become an important force to improve the international monetary system.In 2013,China’s “One Belt and One Road” initiative,the establishment of Asian Infrastructure Investment Banks,Silk Road Fund and other strategies,which has provided an important guarantee for the internationalization of RMB.Since October 1,2016,the RMB has joined the SDR currency basket formally and become the world currency with the weight next only to the US dollar and the Euro.The internationalization of RMB has developed rapidly.However,compared with the major international currencies in the world,the utilization rate of RMB overseas still needs to be improved.Therefore,it has important theoretical and practical significance to study the influencing factors and the path of RMB internationalization.The main contents of this paper include the following aspects: first of all,starting from the three functions of international currency,namely the pricing function,the trading media function and the value storage function,an evaluation index system for the degree of currency internationalization is constructed,and the internationalization index of eight major currencies including RMB(US dollar,Euro,Japanese yen,pound sterling,RMB,Swiss franc,Australian dollar and Canadian dollar)from 2003 to 2017 is calculated by weighting method.Comparing with other international currencies,we can find out the gap and direction of our efforts.Secondly,it sorts out the history of the internationalization of the world’s major international currencies,summarizes the international experience of money,and finds that the rise of a country’s currency is mainly affected by the country’s economic scale,currency stability,financial market development and openness,trade and investment level,political stability and military strength,and monetary inertia.Combined with China’s national conditions,this paper analyzes the role of “One Belt and One Road” in promoting RMB internationalization from three aspects: financial market,trade and investment and currency inertia.Thirdly,we study the main influencing factors of RMB internationalization under the background of “One Belt and One Road”,based on the international experience of the world’s major international currencies and the development of the RMB under the background of the “One Belt and One Road”,variables are selected,empirical research concludes that economic scale,currency stability,trade scale and investment level,political stability and currency inertia have significant impact on RMB internationalization.Finally,according to the research results,the external circulation mechanism generated by the “One Belt and One Road” background and the internal economic environment are combined to form a good RMB circulation path.On the basis of following the general law of currency internationalization,we adopt a gradual internationalization mode from primary to intermediate to senior,and put forward relevant policy recommendations.This article holds that China should seize the important opportunity of “One Belt and One Road” at the same time,while maintaining the long-term growth of China’s economy and the gradual increase of its total trade volume,maintaining the long-term stability of the RMB,building a modern international financial market,opening capital account in an orderly way,realizing the valuation of commodity renminbi,and giving full play to the leverage effect of direct investment on RMB internationalization.While strengthening political and military strength,we should make top-level design and other strategic measures to steadily push forward RMB internationalization.