The change in exchange rate and monetary policy is closely related to RMB internationalization. Based on the background of RMB internationalization, this paper empirically analyzes the influence of RMB exchange rate and monetary policy on RMB internationalization by establishing VAR model. The empirical results show that the change of RMB exchange rate has a negative impact on RMB internationalization. Besides, the money supply also has a negative impact on the degree of RMB internationalization, but the impact is less than that of the exchange rate. Moreover, in the short term, interest rate has a negative impact on RMB internationalization, but it has a positive impact in the medium and long term. Therefore, relevant departments should continue to implement prudent monetary policies, speed up the reform of interest rate marketization, carry out the reform of RMB exchange rate prudently, maintain the stability of RMB exchange rate, and ensure the smooth progress of RMB internationalization.
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