Study On Cross-Border RMB Settlement In Hainan Free Trade Port

Hainan Free Trade Port is a hot issue that has attracted much attention in recent years.The construction plan was promulgated in 2020,and the construction speed of free trade port has been gradually accelerated in the past two years.As a natural island,Hainan has convenient port shipping and natural advantages in developing free trade ports.Based on the unique advantages of trade development,the cross-border settlement business of Hainan develops rapidly.In addition,with the growing economic strength of China and the steady promotion of RMB internationalization,the cross-border RMB settlement business of Hainan is also thriving.However,compared with other provinces in China,Hainan’s cross-border RMB settlement business as a whole still has many shortcomings.This paper first makes a comparative analysis of the cross-border RMB settlement business in Hainan,and then examines the factors affecting the cross-border RMB settlement business in Hainan through empirical analysis,and finally puts forward some suggestions for the development of crossborder RMB settlement business in Hainan.In the introduction section,this paper first describes the research background,significance,content,methods,innovations and shortcomings,and summarizes the current situation and countermeasures of cross-border RMB settlement,influencing factors,the relationship with RMB internationalization,and the content of cross-border RMB settlement in specific regions in the relevant domestic and foreign literature.Secondly,this paper compares the current situation of cross-border settlement in Hainan,Guangxi and Yunnan,and finds that the shortcomings of the current crossborder settlement business in Hainan mainly include late start,few supportive policies,poor foundation,concentrated settlement cities,unbalanced development and other problems.The scope of settlement countries is wide.After that,this paper adopts the classic SWOT analysis method to further analyze the cross-border RMB settlement business in Hainan,and finds that the opportunities and disadvantages of the crossborder RMB settlement business are obvious at present.Then,this paper conducts theoretical analysis,and empirically analyzes the influencing factors of cross-border RMB settlement business in Hainan Province by using VAR model.Through the empirical methods of impulse response and variance decomposition,it is found that there is a long-term cointegration relationship between Hainan CPI,RMB internationalization degree,Hainan financial development level,domestic trade development level,Hainan economic strength,policy factors and cross-border RMB settlement.Finally,based on the above analysis,this paper makes some suggestions for the development of Hainan’s cross-border RMB settlement business,namely,to improve the trade environment,expand Hainan’s trade base,promote the further opening of Hainan’s financial market,enhance the stability of exchange rate,and promote the internationalization of RMB.