Structural Imbalance of RMB Settlement in Cross-Broader Trade and Its Impact on China Monetary System

October 04, 2011

With the rapid development of RMB settlement in cross-broader trade, the problem of settlement structural imbalance has become more apparent and wider debate.  This paper provided detailed analysis of the problem and its impact. First of all,  we analyzed the main reasons for the RMB settlement imbalance in  import-export trade. Then we provided analysis and quantitative estimation of the increase of China foreign currency reserve caused by settlement structural imbalance with the combination of China foreign currency policy.  On these bases, we analyzed the impact on China monetary system.