RMB Settlement Research Articles

The Influence of RMB Settlement Globalization on the Political and Economic Evolution of Singapore Amidst US-China Rivalry

At the dawn of the 21st century, the ascending comprehensive national strength of China has significantly bolstered the role of the RMB in global economic transactions, thereby expediting its international settlement globalization. This development, unfolding within the framework of an increasingly interconnected global economy, profoundly impacts Singapore. Positioned as a crucial trading partner and geographical neighbor to China, while simultaneously serving as a vital security ally of the United States in Asia, Singapore's political and economic landscapes are witnessing transformative shifts. This paper endeavors to meticulously examine and elucidate the specific impacts of RMB settlement globalization on Singapore's political and economic dimensions. Moreover, it aims to explore the potential challenges and opportunities that these impacts may engender for Singapore in the near future, particularly against the backdrop of the US-China competition. The analysis of how the global proliferation of RMB settlement is reshaping Singapore, alongside the nature and direction of this influence amid the strategic rivalry between the US and China, is of paramount importance. It provides deep insights into the evolution of the global political-economic order and assists in formulating strategies for middle-tier nations like Singapore within the changing regional dynamics. By offering a detailed understanding of these developments, this study acts as an essential guide for navigating crises, capitalizing on developmental opportunities, and actively participating in regional affairs.

The Influence of RMB Settlement Globalization on the Political and Economic Evolution of Singapore Amidst US-China Rivalry

At the dawn of the 21st century, the ascending comprehensive national strength of China has significantly bolstered the role of the RMB in global economic transactions, thereby expediting its international settlement globalization. This development, unfolding within the framework of an increasingly interconnected global economy, profoundly impacts Singapore. Positioned as a crucial trading partner and geographical neighbor to China, while simultaneously serving as a vital security ally of the United States in Asia, Singapore's political and economic landscapes are witnessing transformative shifts. This paper endeavors to meticulously examine and elucidate the specific impacts of RMB settlement globalization on Singapore's political and economic dimensions. Moreover, it aims to explore the potential challenges and opportunities that these impacts may engender for Singapore in the near future, particularly against the backdrop of the US-China competition. The analysis of how the global proliferation of RMB settlement is reshaping Singapore, alongside the nature and direction of this influence amid the strategic rivalry between the US and China, is of paramount importance. It provides deep insights into the evolution of the global political-economic order and assists in formulating strategies for middle-tier nations like Singapore within the changing regional dynamics. By offering a detailed understanding of these developments, this study acts as an essential guide for navigating crises, capitalizing on developmental opportunities, and actively participating in regional affairs.

RMB Internationalization Promotes the Transformation Analysis of Import and Export Enterprises

In 2009, the pilot project of RMB settlement for cross-border trade was started, which started the process of RMB internationalization. Later, China has made a series of progress in cross-border trade and investment settlement, RMB offshore market, and monetary government cooperation. In 2016, China joined the Special Drawing Rights currency basket, and great progress was made in the internationalization of the RMB. However, in 2014, RMB’s exchange rate entered into two-way fluctuation channel, increasing the uncertainty; In 2015, the share of RMB internationalization because of the depreciation of RMB decreased significantly, and the RMB balance in Hong Kong decreased by nearly 40% in 2018 compared with 2015. The outbreak of COVID-19 in 2019 and the global economic recession have made it increasingly difficult for China’s foreign trade enterprises. But with the in-depth implementation of the strategy of “Belt and Road”, and the outbreak gradually normalized, and economic recovery, the foreign trade enterprises will usher in a new step of development opportunities, how to seize the opportunity under the new situation, with the deepening of RMB internationalization, open their market, stimulate enterprise vitality, improve profits, at the same time promote the country’s economic growth. Becaming a question which worths discussing.

The Impact of Cross-Border Transactions on the Internationalization of Yuan: Evidence from January 2012 to February 2022

Since the reform and open to the outside world, China's cross-border transactions have been deepening. In this situation, it is imperative to study the impact of cross-border transactions on the process of RMB internationalization. This paper takes the data of the past ten years as the main reference object and discusses it in three step in order to promote the benign process of RMB internationalisation. Firstly, it summarises the current research status of cross-border RMB internationalisation; secondly, it analyses the current status of cross-border RMB settlement and the impact of cross-border transactions on the process of RMB internationalisation; finally, it puts forward policy suggestions on cross-border transactions to promote the process of RMB internationalisation.

Digital RMB Empowering Rural Revitalization Plan

In the 21st century, the world has entered the era of digital economy. In order to better serve the pillar industries of agriculture, implement China's rural revitalization and development policies, better serve the development of agriculture, rural areas, and farmers, and keep rural and agricultural areas in line with the development pace of the whole society, China attaches great importance to the promotion and promotion of policies such as digital RMB settlement for farmers and the masses. To this end, governments and local commercial banks in various regions actively carry out strategic cooperation, integrate online and offline business, and build a financial scenario for digital RMB payment based on agriculture, rural areas, and farmers' services. Utilizing the convenience and preferential system of digital RMB to assist rural revitalization and achieve industrial integration both online and offline. Therefore, this article combines the concept and characteristics of digital RMB to explore its positive role in improving the payment environment and strengthening social security. And based on relevant results, explore relevant strategies for using digital RMB to assist rural revitalization, deeply integrate digital technology with rural industries, and ultimately achieve the goal of rural revitalization.

Autocorrelation Regression Model Analysis and Selection of Cross-Border RMB Settlement From 2011 to 2020

With China's continuous opening to the outside world, changes in the international environment and the operation of the cross-border RMB settlement system (CIPS), the scale of cross-border RMB settlement has fluctuated continuously. In response to this phenomenon, the authors collected and sorted out the total amount of RMB cross-border settlement and payments from 2011 to 2020 time sequence data in China, then use five AR models including ARMA, GARCH(1.1), EGARCH(1.1), PARCH(1.1), and CARCH(1.1) to fit. The experimental results show that the four autocorrelation models all prove that the cross-border RMB settlement has autocorrelation relationship, and the long-term trend continues to grow up. According to the precision and accuracy of the five models, the ARMA model equation is one optimal prediction equation. On the basis of the ARMA model equation, and the establishment of the VENSIM system dynamics simulation model, the scale of China's cross-border RMB settlement in the next 10 years is predicted.

Analysis on the Influencing Factors of RMB Settlement in Cross-border Trade ���� Based on the Perspective of Financial Development

Analysis on the Influencing Factors of RMB Settlement in Cross-border Trade ���� Based on the Perspective of Financial Development

Opportunities and Challenges of RMB Settlement for Cross-border E-commerce in Yunnan

Opportunities and Challenges of RMB Settlement for Cross-border E-commerce in Yunnan

Financial Innovation in the Field of RMB Internationalization

Due to the limitations of the traditional financial system, under the background of the general trend of international financial development, the system construction of RMB internationalization has become an important financial innovation and construction project. Therefore, this project studies the financial innovation in the field of RMB internationalization, and puts forward suggestions and assumptions on the construction of the project system. The main research contents of the project include: Research on hardware construction of digital RMB cross-border transaction settlement system based on blockchain infrastructure; Research on the construction and advantages of distributed cross-border payment network based on digital currency; Research on the construction of distributed cross-border payment network and the reform of international monetary system; Research on establishing risk control and supervision system of digital RMB cross-border payment and settlement; Research on guiding third-party payment institutions to expand digital RMB cross-border payment scenarios.

Factors affecting cross-border RMB settlement under the Belt and Road Initiative: An empirical study based on panel data of 19 countries (regions)

Based on the panel data of 19 countries (regions) under the background of the Belt and Road Initiative (BRI) from 2014 to 2018, this study uses generalized least squares (GLS) models, which reduce the heteroscedasticity to explore the factors affecting partner countries’ RMB settlement choice. Further, this study compares the differences of influencing factors between BRI and non-BRI countries (regions). The results show that for countries (regions) along the Belt and Road, China’s economic and financial development more effectively promote the use of RMB settlement. In addition, the trade characteristics are closely related to the cross-border RMB receipts and payments. In terms of trade volume, the larger the bilateral trade between China and BRI countries (regions), the larger the cross-border RMB receipts and payments will be. In terms of trade structure, due to low degree of substitution for high-tech products, the higher the proportion of China’s high-tech products exported to foreign countries (regions), the greater bargaining power in the choice of pricing and settlement currency. Moreover, bilateral currency swap agreements, the establishment of RMB clearing centers, and currency stability are also critical influencing factors.

Research on RMB Settlement Mode of Cross-border Trade in the Guangdong-Hong Kong-Macao Greater Bay Area

On the background of the gradual maturity of the Guangdong-Hong Kong-Macao Greater Bay Area and the continuous development of cross-border trade RMB settlement, China has gradually developed into four types of cross-border trade RMB settlement methods mainly with clearing Banks. This paper compares the cross-border trade settlement modes in the Guangdong-Hong Kong-Macao Greater Bay Area, and puts forward three Suggestions on the actual operation, foreign exchange risk and supervision of the current cross-border RMB settlements. And then the paper proposes three suggestions, firstly some suggestions of settlement within a multinational corporation, secondly improvement of RMB settlement of cross-border trade, and finally improvement of strengthening authenticity audit of trade.

Study on Exchange Rate Volatility under Cross-border RMB Settlement Based on Multi-layer Neural Network Algorithm

In order to increase profits, foreign trade enterprises need to reduce costs. But cross-border RMB settlement can reduce costs of foreign trade enterprises, which avoids exchange rate risks to some extent and reduces losses. However, cross-border RMB settlement will still be affected by exchange rate changes. In order to explore the law of exchange rate changes and make predictions to reduce the impact of exchange rate changes, the multi-layer neural network algorithm was used to train and test the exchange rates of the USD, EUR, JPY and HKD between November 2017 and July 2018 on the Matlab. The result indicated that the change of currency exchange rate was regular, and different currencies have different characteristics of change. The multi-layer neural network algorithm could accurately predict the exchange rate changes of most currencies and had the best performance in predicting the exchange rates of the USD and EUR, especially the EUR and the second best performance in predicting the exchange rate of the HKD; it could predict the general trend though it had the poorest performance in predicting the exchange rate of the JPY.

Cross-border RMB Settlement Business of Commercial Banks in China

The internationalization of currency in international finance as a hot topic has become the inevitable, also with improved to enhance China's economic strength and the degree of opening to the outside world, the internationalization of the RMB has attracted widespread attention, its position in the international economy and society becomes more and more important. China's cross-border RMB settlement business problem not only in the domestic and foreign theorists get attaches great importance to, is to promote the inevitable choice of China's comprehensive national strength and international influence, to the internationalization of the RMB has far-reaching significance.

An Analysis on the Correlation Between RMB Exchange Rate Fluctuation and East Asian Exchange Rate Fluctuations

Before 2005 July 21st, RMB exchange rate was pegged to US Dollar and adopted a fixed exchange rate. The correlation between RMB exchange rate and exchange rates of other East Asian economies was not significant. Empirical findings indicated that since Mainland China changed its exchange rate regime to a basket of currencies on July 22nd, 2005, in addition to the insignificant correlation between RMB exchange rate and exchange rates of Hong Kong, Malaysia, Thailand, and Indonesia duration the certain period, the correlation between exchange rate fluctuations of RMB and other East Asian economies is significantly related. This shows that the exchange rate regime of East Asian economies is mostly pegged to a basket of currencies. In order to avoid effects of exchange rate fluctuations from other countries on trade interests, exchange rate fluctuations of East Asian economies have a clear regional linkage. However, Mainland China’s exchange rate policy is gradually becoming more open, causing RMB exchange rate fluctuations to become an important reference for overall exchange rate structure in East Asia. RMB internationalization will continue in the future, cross-border trade with RMB settlement increasing, and RMB offshore market size will also expand. And currently Mainland China is leading East Asian economic and trade integration; hence RMB exchange rate fluctuations will have a significant impact on exchange rate fluctuations of other East Asian economies in the foreseeable future.

Influence of RMB Cross‐border Settlement on the Chinese Economy

AbstractIn 2014, the amount of RMB cross‐border settlement had reached RMB7.6tn. It is important to evaluate the potential influence of RMB internationalization on China's macroeconomy. In the present study, a framework that includes monetary supply and demand was created to analyze the influences of RMB cross‐border settlement on China's domestic interest rate, asset price and foreign exchange reserves. It is found that RMB settlement in different BOP items leads to very different effects on China's real economy and the financial market. Based on the analysis, we provide a framework of the policy priorities for RMB internationalization, with the RMB cross‐border settlement items divided into three groups with different priorities. Meanwhile, to support RMB internationalization, exchange rate reforms should be adopted as a priority and a prudent attitude maintained regarding capital account liberalization.

Rinminbi Internationalization

The RMB has been on the road to internationalization since the launch of the pilot program of RMB settlement in cross-border transactions in July 2009. China has established the basis legal framework to facilitate the international use of RMB and RMB internationalization has made significant progress. However, the degree of internationalization of the RMB is still low. In order to promote further internationalization of the RMB, China's economic system must be more open and free. And China must make RMB convertible under capital accounts, build a legal architecture that can protect the interests of the parties to RMB-denominated transactions while also strengthening financial supervision, and expand the international framework for the international use of RMB.