Analysis of Factors Affecting Cross-border Trade Settlement under the Perspective of RMB Internationalization

Abstract

In recent years, the Chinese government has applied a lots of policies to improve the development of Cross-border Trade Settlement (hereafter called “C-BTS” for short) in RMB, which has facilitated the circulation of RMB in foreign trade. Since the introduction of C-BTS, the number of RMB payment transactions has increased, the scale of transactions has been gradually developed, and various benefits such as saving business transaction time and cost have been achieved. This paper focuses on the influencing factors of C-BTS to illustrate the level of RMB settlement for cross-border transactions in China, introduces the background and significance of RMB C-BTS and based on the relevant concepts and theoretical foundations, analyzes the literature on RMB C-BTS at home and abroad, selects relevant quarterly data from 2014 to 2019, establishes the data including GDP, trade The results of various empirical analyses show that GDP, trade market share and RMB effective exchange rate index positively affect the proportion of C-BTS , and propose relevant countermeasures based on the empirical findings that are suitable for the development of C-BTS in RMB.