Study On Reform Of RMB Exchange Rate Regime

It is nearly two years since adopted the reform of RMB exchange rate system in the July 21, 2005. In April, 2007, the value of RMB hits a new record that one RMB was converted into 7.6965 US dollars, as a result, RMB has revalued about 6.93% totally. But China trade surplus are still in suspense and even reached $237.6 billion in February, 2007. It can be concluded that currently foreign exchange rate system is ineffective. Therefore, operate methods and future development orientations of the RMB exchange rate system reform have become top issue under discussion. This paper points out important issues that we should give top priority during RMB exchange rate system reform and put forwards some policy suggestions through comparing the background of reform of RMB and Yen exchange rate system, and the influences of appreciation of Yen on Japan.At first, the paper elaborates the transformation of international exchange rate system and summarizes the general tendency of the transformation by chart. Compare with RMB exchange rate system alter; analyze the China currently RMB exchange rate system. Due to the similar background between dramatic appreciations of Yen in 1980s, and currently RMB exchange rate system reform, this paper analyzes the process of appreciation of Yen and influences of appreciation on economy of Japan, summarizes the experiences and lessons. Combined with real situation of China, analyzes the timeliness of RMB exchange rate system reform, and possible influences on China's economy caused by RMB appreciation, concluded that China's trade surplus have a bearing on economic structure and even global economic structure. Finally give suggestions to China's currently RMB exchange rate system reform.