In The RMB Exchange Rate Regime Innovation Through The Theory And Practice Of The Exchange Rate Regime For The Emerging-Market Country

The exchange rate regime is an important part of the economy system. But until now, there is no explicit answer for a country to choice a satisfactory exchange rate regime. All of the debates show the choice of the exchange rate regime is a dynamic transformation. For a emerging-market country , there still lack of enough theory accordance to prove the "corner solution" though it is very fashionable now. The evolution and the present situation of the international exchange rate regime also can't provide the practical evidence for the " intermediate regime" disappeared or disappearing. So the "intermediate regime" is probably the more suitable choice for the emerging-market country. But following the opening of the capital account, the emerging-market country shall add the flexibility of the exchange rate regime and turn to the more flexible intermediate regime from the less one. The Thailand, Argentina and Poland's lessons and the experiences of the exchange rateregime evolution during their opening capital account show that opening capital account must coordinate with the transformation of the exchange rate regime. The innovation of the RMB exchange rate regime is a transformation course along with the change of economy and finance. Now we are in the stage of opening the capital account gradually and stepping to the more flexible exchange rate regime. Loosening the control of capital account shall coordinate with adding flexibility of the exchange rate regime. The innovation of the RMB exchange rate regime this year just reflects the request of opening the capital account .So it is a good choice. From now on, we shall step to refine the mechanism of forming the rate regime in order to realize the real managed floating exchange rate regime which referencing a basket of currencies and based on market supply and demand.