The Study Of Form Mechanism Of Renminbi Exchange Rate From The Balance Of Payments Angle

Exchange rate is the variable resides in the core status in the open economy, each kind of macroscopic economical variable and the microscopic economical variable can cause its change through each way, but its change can bring the important influence to other economical variables. Exchange rate is the price in the foreign exchange market. The flow of supply and demand in the foreign exchange market affects exchange rate directly. Our country has implemented take the market supply and demand has the management as the foundation the floating exchange rate system, also has realized convertibility under the Renminbi current account, the Renminbi exchange rate also more has been decided frequently by our country,s condition of balance of payments. This article first embarks from the exchange rate general theory and analyzes exchange rate decision and change separately from commodity market and property market. but in the actual economy, the exchange rate is decided by flow of product and fund together. The flow of product and fund reflects separately in current account and capital and financial account.Similarly, in these two items no matter what an item all cannot alone decides the realistic movement of the exchange rate. Exchange rate is decided by the balances of the two items together. Next,this article analyzes the influence of balance of payments in exchange rate through the foreign exchange supply and demand curve and under the incomplete floating exchange rate system, how the government affects the foreign exchange market supply and demand and the balanced exchange rate through the change of foreign exchange reserve volume.After reviews the history of Renminbi exchange rate level and form mechanism,analyzes the relationship between balance of payments and Renminbi exchange rate. Obtains from the analysis, with the form mechanism of Renminbi exchange rate turns to market gradually,the balance of payments of our country influences Renminbi exchange rate increasingly. The decision and change of Renminbi exchange rate are more and more influenced by the foreign exchange market supply and demand directly. Finally,this article puts forward some preliminary views about how to consummat the form mechanism of Renminbi exchange rate.