An Empirical Analysis of a Settlement Currency in the Silk Road Economic Belt

The regions and countries have begun to seek deeper cooperation actively, especially cooperation in the monetary area, after the Asian crisis and the global financial crisis. Strategic Concept Silk Road economic belt is raised against this background trend. This paper studies the possible forms of the national currency cooperation along the Silk Road economic belt. First, construct Currency Basket Index by study on the relationship between the exchange rate. And then, choose the weight for the currency with the smallest fluctuations to build the currency basket as the settlement currency in trade. Finally, the weights for the currency basket of some countries along the Silk Road economic belt are simulated to provide policy recommendations for monetary cooperation.