|摘要: ||Chinese Economy has been growing rapidly in recent years. In order to expand its economic influence internationally, RMB internationalization becomes an economic policy of extreme importance. International circulation of RMB in the future will increase day by day. All literatures discussing currency internationalization mostly use the ratio of that particular currency as foreign exchange reserves to the world's total foreign exchange reserves as an important currency internationalization index; slightly more than half use USD, EUR or GBP as research objects, very few analyses were conducted regarding RMB.|
This study mainly focuses on factors influencing RMB internationalization, conducting analysis using Chinn and Frankel (2007) model as reference. However, RMB as foreign exchange reserves is rather low in the percentage of the world's total foreign exchange reserves, and not yet presents an actual number; therefore, this paper uses cross-border trade RMB settlement amount as RMB internationalization index; combined with FDI, exchange rate, interest rate, CPI, total currency swap, RMB global payment as explanatory variable, at the same time included RMB exchange rate reform and RQFII implementation duration as two dummy variables, to conduct regression analysis, in order to further discuss the degree of effects of those variables on RMB internationalization.
The result of the empirical analysis shows, besides exchange rate and interest rate are not significant, the rest of the variables are all significant. Indicating RMB exchange rate and interest rate under Chinese government control, are not favorable to RMB internationalization, in contrast, all the other influential variables are related to being open to the free market. In another word, In order to encourage RMB internationalization, the Chinese government should loosen capital market control.