The Status of Cross-border RMB Settlement and Its Influencing Factors: Evidence from Panel Data

Abstract

In order to explore the current situation of crossborder RMB settlement and its influencing factors, this paper applies gravity model in empirical analysis. The results are as follows; the amount of cross-border RMB settlement is positively correlated with China's GDP, bilateral trade volume between China and border trading countries, and whether there is a positive correlation between China and its trade cooperation countries. Besides, cross-border RMBB settlement is negatively correlated with exchange rate fluctuation and geographical distance. Taking account of empirical results, this paper puts forward corresponding suggestions. Keywords—cross-border RMB settlement; gravity model; influencing factors