RMB Revaluation Of The Impact On China's Economy And Countermeasures

Since RMB exchange rate formation mechanism reform 2005,RMB maintain a stable basically slow the appreciation of the situation,But since early 2007,RMB exchange rate has accelerated the overall appreciation of the characteristics,appreciation is also expected to strengthen again. At the same time,The world for a revaluation of the RMB increasing demand,Revaluation is becoming the focus of international economic issues. To that end,In this paper, the exchange rate system and the rate decision on the basic theory of,Exchange rate and the national economy from the perspective of the relationship between the analysis of determining the exchange rate movements of the main factors and the impact on China's economy. Exchange rate appreciation from the international community, both positive and negative effects. In light of China's specific national conditions and the current international economic environment,China's response to the appreciation of the RMB exchange rate should be taken countermeasures。Through theoretical analysis and empirical verification,mainly based empirical analysis of standardized analytical methods, and through the exchange rate decision theory,the appreciation of the RMB exchange rate issue of the background and reasons,clarify the appreciation of the RMB exchange rate is that China's economic development to a certain degree, and the inevitable outcome of the issue can not be avoided,China is also actively promoting the reform of the RMB exchange rate formation mechanism. Cope with the increasingly complex international economic situation ,we must face and answer the major theoretical and practical issues. By the appreciation of the RMB exchange rate on China's economy at all levels of the favorable adverse effects of the appreciation of the exchange rate on international experiences and lessons in areas such as analysis and verification. Integrated current revaluation of the RMB exchange rate on the results of research on the issue, stated appreciation of the RMB advantages outweigh the disadvantages , but the appreciation of the BMB should take the initiative, controllability and gradual manner conclusions, and further appreciation of the RMB .China should take measures and the reform of the RMB exchange rate recommendations. This paper is divided into three parts:The first part of the exchange rate and exchange rate system connotations. The exchange rate is of a country's external economic and trade ties between the exchange rate system of a country's economic system is an important component of the revaluation of the RMB exchange rate issue. first of all, from the exchange rate and the exchange rate system starting with the basic concepts and theories on the relevant exchange rate system and the international community more influential theory of exchange rate decision. Secondly, in view of changes in exchange rates and economic and political relationship between the departure of the impact of exchange rate changes the main factors of the general theoretical analysis, including the impact of exchange rate changes the main economic factors, namely the balance of payments,inflation,economic growth, foreign exchange reserves and other factors; major policy factors, namely interest rate policy,exchange rate policy and foreign exchange intervention policy and other factors,other factors that speculation,political and psychological factors.The second part of a revaluation of the RMB exchange rate reviewed background, and then the appreciation of the RMB exchange rate on the internal factors from the perspective of an objective empirical analysis, pointed out that the appreciation of the RMB exchange rate by China's sustained economic growth,the rapid increase in China's foreign exchange reserves,the relative level of interest rates lower and China's comprehensive national strength has been enhanced by internal factors such as determined by the objective existence of a revaluation of the RMB exchange rate led to an inherent impulse. In recent years from the international economic situation and major economic powers and economic organizations and the development of their respective economic and political purposes of analysis of the RMB exchange rate appreciation of the external factors, namely the United States,Japan,Western Europe and other countries to put pressure on the appreciation of the RMB exchange rate and expected. Finally, in light of China's actual economic explained in detail to the revaluation of the RMB exchange rate on China's economy. RMB exchange rate appreciation on the positive impact of China's economy include: Enhanced capacity to pay RMB and to make China's industrial structure adjustment, and optimize the structure of China's export trade and expansion of domestic demand, and enhance their international competitiveness and ability to resist risks,balance and ease their trade conflicts and enhance the effectiveness of monetary policy and strong macro-economic regulation and control ability , speed up the process of internationalization of the RMB, contribute to the peaceful rise of China's economy. RMB exchange rate appreciation on the positive impact of China's economy include: export growth will be restricted, not conducive to attracting foreign investment and upgrading of the processing trade industry, and not conducive to the introduction of foreign direct investment in China will help alleviate the pressure on domestic employment, monetary policy is not conducive to effective play , the impact of the international balance of payments and financial market stability.The third part of the first summarized and compared to Japan and Germany to exchange rate appreciation to the different responses and different from the results obtained on the revaluation of the RMB exchange rate should draw inspiration and experience, according to our own stage of economic development and specific conditions,the proposed revaluation of China's RMB exchange rate should uphold the principles and measures should be taken. RMB revaluation pressure to the short-term measures include: appropriate reduce exports,increase imports and reduce the current account surplus,enacting a more active foreign investment strategies to reduce the capital account surplus; reform of the current foreign exchange management system,a fundamental easing of the pressure of RMB appreciation. RMB revaluation pressure to the long-term strategy, that is, the RMB exchange rate formation mechanism reform of the possible steps include: First step to widen the Yuan-dollar exchange rate band; step reform of the exchange rate formation mechanism; third step of the realization of free convertibility of the RMB. Actively and steadily pushing forward China's reform of the RMB exchange rate formation mechanism in the process, we should adhere to three principles: First, improve the RMB fully convertible by the needs of market conditions and institutional arrangements; Second, the RMB can not directly choose freely floating exchange rate system; Finally, the international community needs to strengthen further cooperation.