The Impact of RMB Internationalization on China's Import and Export Trade

Abstract

RMB internationalization will have many impacts on China. This article will discuss the advantages and disadvantages of RMB internationalization on China's import and export trade based on the current level of RMB internationalization and China's participation in the world economy. The rise of the RMB's status has also increased the attractiveness of capital and reduced the continuous flow of money. In addition, the internationalization of the RMB can actively promote the adjustment of national economic results and trade structure. What's more, the internationalization of the RMB can also provide positive leeway for monetary policy. However, the upgrade of RMB exports will significantly reduce the competitiveness of traditional industries and have a particular impact on the stability of the current financial market. China's foreign exchange reserves will also suffer huge losses. In order to make the research perspective more systematic and comprehensive, this paper sets up a specific model based on theory, extensively collects data for empirical testing, and draws corresponding conclusions. On this basis, the research conclusions of this paper are made, and specific countermeasures and suggestions are put forward.