Study On The Exchange Rate System Choice Of RMB Under The Open Economy

Since the 1970's and 1980's, the liberalization , integrating andglobalization of the economy and finance have become an importantcharacteristic of the international economy, more and more countryimplement economic transition , from the close economy to the openeconomy. The open economy means that resources of the commoditymarket , money market and capital market can flow more freely at theinternational level. Establishing a rational foreign economic links system, It'sessential to keep the stability of the macroeconomy and sustainabledevelopment of the financial system under the open economybackground. Among the foreign economic links system, a centralquestion is the choice of the system of exchange rate. At present, Our country's RMB exchange rate system namely isbased on market supply and demand, single, managed floatingexchange rate system, but in fact, because it has several big problemsuch as pegs the single dollar regularly , the narrow fluctuating range ,exchange rate is unequilibrium exchange rate , exchange ratemechanism is not perfect,etc. So the exchange rate determined bysupply and demand of foreign exchange market and managedfloating exchange rate system have not received real embodiment. So,in fact, the current RMB exchange rate system still belongs toConventional fixed peg arrangements. With the improvement of theeconomic opening of our country, and the recovery of Asian economy,current RMB exchange rate system demonstrates a great deal ofdrawbacks and unadaptability.In order to change this current situation,meet the needs of open economy, the exchange rate system of ourcountry needs to carry on the reform.Thesis proceed from general theory of the international exchangerate system chooses , using the experience of exchange rate systemchooses of the developing country , have introduced the currentsituation of RMB exchange rate system of our country and existingproblem, and then according to the developing direction of the openeconomy of our country, have analysed the necessity of exchange ratesystem reforms , economic environment and choice opportunity of thereform of RMB exchange rate system under the open economy, andproposed that our country should choose the real managed floatingexchange rate system under the open economy. Finally, pointedly putforward the policy recommendations realizing the system conversion.