The Influence Of Renminbi Exchange Rate Reform To The Foreign Trade Of Our Country

In July 21^st 2005 , our government began to carry out Managed Floating Exchange Rate which is baeed on the markets'suppiy and demand , and adjusted according to a basket of currencies . Renmibi was floating upward 2% . The complete reform of Renminbi exchange rate must affect our foreign trade deeply in the future . So the paper observes the influence to our export and import from this certain small adjusting of exchange , and analyzes the negative influence and advantage fuction which the exchange reform takes to our foreign trade industry and enterprises . Then it does researches and works out some devices to deal with the exchange reform .The paper is devided into three parts :The first part mainly says the circumstances of Renminbi exchange rate reform . Beginning with the theory , it describes exchange , the purchasing power parity , and the relation between the exchange and the foreign trade .The exchange is the most important variable for a country in its international economic activity . Casel Theory of Purchasing Power Parity tells us exchange rate's flosting relates close to an economy's internal price . To the opposition, the exchange rate's adjusting has a deep influence to its balance of the foreign trade and internal economic activities . The Theory of Elasticity , the Theory of Long Delay , the Absorbing Analysis Method , the Currency Analysis Method , the Theory of Inperfect Exchange Transmitting and so on are all classical theories researching on that the exchange rate retroats an economy's development and foreign trade . These theories observe the fuction of exchange rate in different points of view, and have got the final conclusion : The exchange rate movements may affect the trading amount and structure . In the common saying , exchange rate devaluate will be favorate for...