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The Selection Of Exchange Rate Regime Of RMB In The Near Future

Posted on:2006-12-16Degree:MasterType:Thesis
Country:ChinaCandidate:L BinFull Text:PDF
GTID:2166360155962636Subject:Finance
Abstract/Summary:PDF Full Text Request
Exchange rate is the price of foreign exchange dealing, whose essence is the ratio of two different currencies. The exchange rate regime is one country's institutional arrangement for determining and adjusting exchange rate. As playing a significant role in the economic system, the exchange rate regime influences the growth and stability of national economy profoundly. Since 2003, the international society's focus on the exchange rate of RMB has resulted from not only the level of the rate, but also the suspicion of its rationality. The irrationality of current RMB exchange rate regime has given some countries excuses to gloze over their domestic problems. How to choose a rational exchange rate regime based on our country's economic development has become an especially critical and practical problem.At first, this paper points out the inevitability of RMB exchange rate regime reform based on the analysis of the development of current international exchange rate regime and its theory, the developing course and characteristics of current RMB exchange rate regime, besides the study of the classified management of exchange rate regimes of IMF and the optimum monetary district theory. Then second, after comparing different kinds of regimes and considering China's economy, it proposes a managed floating exchange rate regime is a comparatively better option. And third, through summarizing the experience and lessons that various countries change their exchange rate regimes, comparing and analyzing the opportunity of changing regimes in various countries, and concludes that it is preferable time for china to change current exchange rate regime now.Finally, this paper proposes that during aforementioned reform, it is necessary to make the economic structure reform match the macroeconomics policies, and keep changing mechanism and opening Chinese capital account at the same and gradual pace. Under the condition of maintaining comparative balance of international payments, the compulsive foreign exchange settlements should be changed into the voluntary; cultivate pluralistic subjects operating and trading independently in the foreign exchange market, the role of market mechanism should be allowed to make a full play in the adjustment of exchange rate; suitably reducing the intervening frequency of the central bank to the market, drawing lessons from mature intervene methods of foreign exchange market of central banks of other countries, the foreignexchange intervention mechanism and operative skill by the central bank should be improved and perfected in practice .
Keywords/Search Tags:The Exchange Rate Regime, The Fixed Exchange Rate Regime, The Managed Floating Exchange Rate Regime
PDF Full Text Request
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