On Cross-border RMB Settlement and RMB Internationalization
- Author Yanzhao Gong
- DOI 10.17605/O
- Country : China
- Subject : International Economics and Trade
Keywords : RMB internationalization; cross-border RMB settlement; Capital Account Control
Abstract
Constrained by internal and external conditions, the internationalization of RMB can be a long-term process. As an important measure to promote RMB internationalization, cross-border RMB settlement has its own limitations. Cross-border RMB settlement is a conditional policy of capital account liberalization, and its driving force is mainly based on supply rather than demand. Moreover, Outflow and reflux of RMB under cross-border RMB settlement is contrary to the import and export mechanism of typical international currencies, which is unsustainable. Therefore, we cannot expect too much of cross-border RMB settlement in RMB internationalization process.
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