Dissertation > Excellent graduate degree dissertation topics show

Study on RMB Settlement in Cross-border Trade

Author: YangZhaoZe
Tutor: LiuJunShan
School: Dongbei University of Finance
Course: Finance
Keywords: Cross-border Trade RMB Settlement Scale Measurement Proposals
CLC: F832.6
Type: Master's thesis
Year: 2011
Downloads: 508
Quote: 2
Read: Download Dissertation


In 2007, after the outbreak of the subprime mortgage crisis, the exchange rates of the US dollar, the euro and other major international monetary fluctuate violently. In this scenario, when apply these currencies to settlement in foreign trade, we will face greater risks of exchange rate fluctuations. And the stable volatility range of RMB exchange rate in the crisis has won international prestige and reputation. This instant, RMB settlement in cross-border trade reached the international stage. At the same time, promoting RMB settlement in cross-border trade is an important step in the internattlonalization process of RMB.We first give a brief summarization of the background, significance, content and method of the research on the RMB settlement in cross-border trade. Then, we systematically review the existing literature about the monetary internationalization, monetary competition theory, currency choice theory and RMB settlement in cross-border trade theory. Summarizing the existing favorable conditions and the significance of development, we propose and conduct a comprehensive analysis about the current main problems of domestic development of RMB settlement in cross-border trade, and through a regression model, forecast future scale of domestic RMB settlement in cross-border trade over the next decade. Results show that, by the year 2020, the proportion of RMB settlement in import and export trade has respectively reached 38.4% and 16.5%, compared with the current 4.8% and 0.5%, the increment reached 33.6% and 16%, totaling 7.226 trillion yuan. This shows that the prospect of domestic implementation of the policy is very promising, and will benefit domestic import and export enterprise enormously.Given the existing problems in the domestic RMB settlement in cross-border trade and the forecast of scale for the next ten decade and the historical experience, I propose a further optimization strategy of macroeconomic environment and the banking and corporate -focused strategy. In macro sense, we must continue to enhance China’s comprehensive national strength, maintain steady appreciation of the RMB, and safeguard our exchange rate market security; Strengthen the openness of capital finance projects, prompting further upgrading of the level of financial openness in China, enhance international financial cooperation and improve the settlement system; At the same time, support off-shore financial market construction, widening roads of RMB to the world and strengthen the regulation on cross-border flows, prevent money laundering risks, maintaining financial market stability and security. For Banks, more important is to strengthen their own construction, and improve service level; promote the propaganda and enhance risk management. The business of RMB settlement in cross-border trade is still relatively new, of which the entire risk prevention system is still not perfect, so the banks need to do before, during and after the three aspects of the control and prevention. And for enterprises, the enterprises are the main actors, or the biggest beneficiary,the enterprise should first enhance the consciousness of using local currency for settlement, and then through increasing investment in science and technology and strengthening professional cooperation, improve the bargaining ability of enterprises, and strengthens the discourse right. At the same time, the enterprise should actively use RMB settlement in foreign trade, and actively carry out RMB settlement in the service trade and capital account.The possible contributions of this paper are:We give a comprehensive description of the development of RMB settlement in cross-border trade, summarize the favorable conditions and significance of implementation of RMB settlement in cross-border trade, and according to the present situation of the development, propose the existing problems of RMB settlement in cross-border trade. Using empirical analysis, we construct a model and estimate the proportion of RMB settlement in the import and export, to predict the size of RMB settlement in cross-border trade for the next decade. Despite many problems, the prospect of RMB settlement in cross-border trade is very promising. In reference to the international experience, we summarize experience and lessons from the promotion of US dollar, the euro and yen as international settlement currency. Especially, when measure the size of settlement, we reference historical settlement data of yen in connection with the reality in China to estimate the scale of settlement.The paper may be insufficient, in further research, it needs to be perfected:As there is no specialized statistical data on cross-border trade settlement, we can only obtain data from the head office of the people’s Bank of China, the Hong Kong Monetary Authority and newspapers, which are dispersive and non-continuous. By bringing together all of the above information, we calculate the amount of settlement each month the total amount. Since the data is not completely accurate, it also influences the accuracy of the measurement. When estimating the exchange rate for the next ten years, given the thought that the appreciation of the RMB will continue in the future, I apply the year appreciation rate calculation method, which is not accurate and needs perfection.

Related Dissertations

  1. On Civilian-run Colleges and Universities Issue and Its Internal Management System to Improve,G647
  2. Research on the Problem of Building the Service-Oriented Government of Handan City,D630
  3. Accelerate Establishment of the Legal System of China’s Oil Reserves,D922.67
  4. Legal Issues in Electronic Payment,F832.2
  5. A Investigation on the New Mathematics Curriculum College Entrance Examination of ZheJiang in 2010,G633.6
  6. International Education Exchange and Cooperation of High School,G649.2
  7. Comparative Study of Chinese and Foreign Social Assistance,D632.1
  8. The Multilateral Trading System under the International Legal Protection of Labor Rights,D998.2
  9. Investigation Research on the Situation of Sports Consumption of Urban Residents in East of Hebei Province,G812.7
  10. Judicial Determination of Bribery,D924.392
  11. On the Perfection of the Chinese Juvenile Criminal Case of Non-prosecution System,D925.2
  12. Study on Collateral Obligation of Banks,D922.281
  13. Agent Right of Household Affairs,D923.9
  14. On the Nature and the Effectiveness of the Divorce Agreement Before the Lawsuit,D923.9
  15. Research on Virtual Property,D923
  16. Of life service status and development of the newspaper,G216.3
  17. Real estate mortgages and other rules of priority conflict,D923
  18. On Criminal Summary Procedure,D925.2
  19. Inside Trading,D924.3
  20. Reynolds Privilege, Media Freedom and English Defamation Law Reform,DD913;G210
  21. Resignation Divorce System Research,D923.9

CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Exchange rate,foreign financial relations
© 2012 www.DissertationTopic.Net  Mobile