A Study On The Measurement And Influencing Factors Of The Degree Of RMB Internationalization

Since the launch of the RMB cross-border settlement pilot in 2009,RMB has made great progress in its three major functions of cross-border settlement,value measure and storage mean and the level of RMB internationalization has continued to rise.Throughout the development process of RMB internationalization,it can be roughly divided into the following four stages: the first stage is the germination and ’ regionalization ’ boom period from 1989 to 2008,the second stage is the booming opportunity period from 2009 to 2015,the third stage is the wandering period from 2015 to 2017 and the fourth stage since 2018 accompanied by the emergence of the central bank ’s digital currency pilot.At this stage,it has important theoretical and practical significance for measuring the level of RMB internationalization and analyzing its influencing factors.Based on the theory of monetary origin,Marx’s theory of monetary internationalization,Triffin’s dilemma and currency substitution theory,this paper summarizes the development history of RMB internationalization,compares the path of international monetary function and the path of monetary cooperation and regionalization of RMB internationalization in two dimensions,and further analyzes the influencing factors related to RMB internationalization.The paper further analyzes the influencing factors related to the internationalization of RMB.Based on the theoretical research,this paper analyzes the current development of RMB internationalization and constructs a comprehensive index system by selecting representative indicators in different dimensions,starting from the three major functions of currency.Subsequently,this paper uses a dynamic panel model(GMM)approach to empirically examine the main factors affecting the internationalization of RMB in terms of economic size,the size and stability of financial markets,the stability of currency values,and network externalities of currencies.The study shows that,first,compared with the core position of the strong US dollar in the international monetary system,there are still large gaps in the network externalities,stability of the currency value,and completeness of financial market development of the RMB.Second,compared with the fluctuation of RMB exchange rate,internal and external factors such as national economic strength,financial market level and RMB currency stability have more significant impact on RMB internationalization.Third,in addition to the traditional economic scale,trade status and political factors,factors such as the external network nature of the currency,currency stability and financial market development also directly affect the RMB internationalization process.Meanwhile,factors such as the size of the currency’s user base,the stability of the currency’s value,and the completeness and standardization of financial market development may even determine the level of RMB internationalization..