East Asian Monetary Cooperation And The Reform Of RMB Exchange Rate System

The outbreak of Asian financial crisis in July 1997 had an unprecedented fierce impact on the East Asian countries. After crisis, the serious shortcomings of the current international monetary system was completely exposed. East Asian countries also recognized the vulnerability of their monetary system and the importance and urgency of the East Asian regional economic and monetary cooperation. However, viewing from the content point of the current regional monetary cooperation, it was still at the level in crisis prevention and rescue mechanisms establishment. At this stage, There were still many problems of the regional monetary and financial cooperation in East Asia.With the continuing deterioration of subprime crisis in 2008, in this current volatile economic and financial situation, the East Asian monetary cooperation and exchange rate coordination problem much-needed to be solved. However, the alone action of each East Asian country was not only of high cost, but could not solve the problems of external infection, etc. So regional countries such as Japan and China should assume the responsibility of the regional powers to speed up the process of regional monetary and exchange rate coordination.As the world's second-largest economy, China's position in East Asia increased significantly, playing a pivotal role in many fields such as trade and investment. From China's own perspective, the promotion of monetary cooperation between East Asia had a very important meaning to the development of China's economic and financial systems.Reform of RMB exchange rate system combined to the East Asian monetary cooperation, is not only beneficial to promote the development of China's economic and financial, also accord with the common interests of the region. But the RMB exchange rate system itself, there are a series of problems to be further reform and improvement. The coordination and cooperation in the exchange rate between China and other economies should be gradually proceeding.Of course, the reform of RMB exchange rate system is not merely considering regional monetary cooperation factors, also should accord with China's specific economic realities. Besides, There should also be other relevant policy to be coordinated, such as the adjustment of industrial structures, the transformation in the pattern of economic development, especially the improvement of the exchange rate formation mechanism and the further development of the foreign exchange market.