Study On The Reorientation Of RMB Exchange Rate Regime In Opening Economy

Exchange rate regime is an important part of the economic regimes of a country. The rational exchange rate regime is one of the important guarantees of the economy increasing. Since 1994, RMB exchange rate regime intended to be a US dollar-pegged exchange rate regime, which created the beneficial conditions for the development of the economy of China in recent ten years. But with the improvement of the level of the opening-up of the economy, especially in 2001 China joined WTO successfully, so the economy of China is mixing with the economy of the world. Meanwhile, it will be unavoidable that the domestic economy will face up to varies impacts brought by the instability of the international market. In the new situation, China's present exchange rate regime is experiencing a severe test. It is very necessary and pressing that we should adjust or reform the exchange rate regime appropriately. Basing on the background of the opening-up of the economy and focusing on the impacts and the effects suffered by China's exchange rate regime, the paper discussed the necessities of the reforming and adjusting, then pointed out the basic way of the reforming.The paper is divided into three chapters. In the first part, the paper discusses and proves that China's present exchange rate regime is a US dollar-pegged exchange rate regime, and estimates objectively the advantages and disadvantages of the regime. The second part emphasizes on analyzing the impacts and effects suffered by the fixed exchange rate regime. The part is the emphasis of the paper, which discusses the impacts faced by present exchange rate decision regime, the internal instability of the fixed exchange rate regime, and summarizes the contradictions and conflicts existed between the exchange rare policies and the currency policies through the practices of the 3 times conflicts in the recent 10 years. Through the analysis of the second part, we can find that the shortcomings of the present regime are more and more obvious with the process of the further opening-up, all that mentioned above arouse the question of the regime's reorientation. In the third part, according to the comparison to the choices of the differentcountries and the discussion to the basic conditions existed in China, theoretically I have the opinion that we should choose the floating exchange rate regime in China. Moreover, in the present situation, choosing independent floating exchange rate regime will suffer from many restrictions, so I think in the process of the regime's reorientation we should think about the differences of long-term and short-term. Because of the demand of stability of the economy and the windless transition, we should design a special regime between fixed and floating exchange rate regime in the short-term, and make the independent floating exchange rate regime reality step-by-step in the long-term.