The Impact of the Belt and Road Initiative on the Internationalization of the RMB

Jianan Sui; Yun Ge; Xuehua Lin; Zixuan Zuo; Xinyue Zhang

doi:10.59429/paat.v5i2.1394

Jianan Sui Shandong University of Science and Technology
Yun Ge Shandong University of Science and Technology
Xuehua Lin Shandong University of Science and Technology
Zixuan Zuo Shandong University of Science and Technology
Xinyue Zhang Shandong University of Science and Technology

DOI: https://doi.org/10.59429/paat.v5i2.1394

Keywords: Belt and Road Initiative; RMB Internationalization; Cross-Border Payments

Abstract

The aim of this paper is to explore the impact of the Belt and Road Initiative on the internationalization of the RMB. Through analysis of the implementation of the initiative and related data, we find that the initiative has had a positive impact on the internationalization of the RMB. The initiative has promoted the use and recognition of the RMB in participating countries, and has contributed to the growth of the RMB in cross-border payments, trade settlement and as a reserve currency. In addition, the initiative has increased the visibility and trust in the RMB and strengthened economic cooperation between China and the participating countries. However, some challenges and obstacles also exist, such as financial system integration, regulatory harmonization and cultural differences. This paper presents a comprehensive analysis of these aspects and proposes corresponding policy recommendations to promote the wider use of the RMB in the Belt and Road Initiative.

References

[1] Bainad, Cohen BJ. The Future of Sterling as an International Currency[J]. The Economic Journal, 1972, 82(326):748. [2] Hartmann P. The Currency Denomination of World Trade after European Monetary Union[J]. Journal of the

Japanese & International Economies, 1998, 12(4): 424-454. [3] Zhao HK. The possible development of the renminbi as one of the world currencies[J]. Economic Research, 2003(3):54-60-91.