Exchange Market Pressure And Market Intervention Under Managed Float Regime In East Asia

East Asian countries such as Singapore, Korea, Malaysia, Indonesia, Thailand, China and other countries, has adopted managed float regime in many periods. An important feature of managed float regime is that there are exchange market pressure and market intervention. In this paper, exchange flexibility index, foreign exchange market pressure index and intervention index are used to analysis exchange market pressure and intervention in these countries.After the Asian financial crisis, the appreciation periods on the foreign exchange market were more than the depreciation periods. Analysis showed that exchange market pressure is closely linked with economic growth, savings and investment, international balance of payments and other variables. The structure of the international balance of payments has a major impact on exchange market pressure. Exchange market pressure of Malaysia, South Korea, Singapore are even more dominated by its flexible exchange rate regime and the impact of external shocks.On this basis, this paper examines the characteristics of national exchange-rate policy and policy effects. After the Asian financial crisis, most Southeast Asian countries are actively accumulating foreign exchange reserves to strengthen the exchange market intervention capabilities. At the same time, these countries tend to underestimate the value of the currency. South Korea and Singapore should be learned for the exchange rate adjustment, their monetary authorities intervene in exchange markets to iron the foreign exchange market volatility rather than curb the appreciation of local currency. Singapore does not strongly interfere with the currency appreciation, but inclines to exist in the currency depreciation pressure, laissez-faire moderate depreciation of the currency. South Korea shows that, the increased exchange rate flexibility to achieve currency appreciation, not only can slow the increasing pressure on foreign reserves, but also can achieve independent monetary policy, contributing to macroeconomic stability. The article also examines the exchange market intervention effects on the national economic growth, inflation, balance of payments, monetary policy independence. Empirical analysis shows that exchange rate policy in these countries after the Asian financial crisis have achieved various degree of success.The end of this article focused on China's exchange rate policy and its effect under the RMB appreciation pressure. Analysis shows that, after the reform of the RMB exchange regime, exchange rate flexibility has dramatically increased. China's monetary authority allows the currency appreciation; on the other hand, it is still trying to control the trend of currency appreciation. People's Bank of China intervened in the foreign exchange market, and has taken write-off measures, but the effect of the intervention is not satisfactory. In order to ease the appreciation pressure on the foreign exchange market, it must reduce the income constraints faced by economic agents and financial development constraints.