Comparative Study On Chinese Managed Floating Exchange Rate Mechanism Reference To A Basket Of Currencies

Since 2001, China's foreign trade and foreign investment was sustained increasing, and lead to the rapid increase in the balance of payments surplus and foreign exchange reserves increase. Strong appreciation of the RMB is expected to continue warming, caused discussion in recent years on the RMB exchange rate regime choices and the direction of reform in the international context-depth.July 21, 2005, the People's Bank of China announced the RMB exchange rate mechanism reform programme: the RMB exchange rate is no longer pegged single dollars, but the introduction of more flexible based on market supply and demand, the reference to a basket of currencies adjust, managed floating rate mechanism, the RMB exchange rate regime once again become the focus of attention at home and abroad. This will be our macro and micro perspectives to our in-depth analysis of the current exchange rate mechanism reform, the choice of exchange rate mechanism theory and Singapore, India, Poland countries in the exchange rate mechanism reform experiences, my point is that the current reference to a basket of currencies managed floating exchange rate mechanism is a transitional superior choice facing in our current environment, and presented my views and recommendations on the further development of our exchange rate system reform.