THE IMPACT OF RMB CROSS-BORDER SETTLEMENT ON CHINA AND THE ASEAN TRADE

With successful experience in dealing with the global financial crisis and international trade, Chinese government has started with the internationalization process of its currency RMB. The internationalization of RMB is quite different from other currencies like US dollars as its internalization is made before the opening of the capital market. The main step for internationalization of RMB is RMB cross-border settlement which is to have influential impact on China and the ASEAN trade. RMB cross-border settlement is to expand from close geographical areas to the international scope over time. China will see great developing opportunities as well as risks with the introduction of RMB cross-border settlement. At the same time, the ASEAN trade will be influenced by RMB cross-border settlement as most of related investments and trades will be based on RMB after that.