The Research Of RMB Exchange Freely And International Status

Since the 1990s, the globalization of the world economy has become increasingly evident. With the development of information technology, transportation and communication technology, push forward the word economy, international trade and international finance to link together more closely. Under such kind of international environment, as a rising developing country, we must reconsider what kind of role and status we are playing in the international finance stage, when we are in the process of building and reforming the socialist market economic system. With entering into the WTO, our finance is opening to the world day by day, RMB as our only legal currency, needs to adapt to this change and take on its own responsibility constantly. Thus, we must face two main questions, how to promote the RMB fully exchange; How to create the condition of RMB internationalization in the future.Based on these two main questions, we discuss them for details from the realistic situation of our country, international general experiences, the policies and system. The main structure of the article is:1. To summarize and analyze the forming process, historical evolution as well as realistic situation of RMB rate system, to understand the basic situation of the RMB rate, thus prepares for essential knowledge for the later analysis.In the short-term strategy to deal with: the reform of RMB exchange rate formation mechanism of China's financial reform is one of the important goals, which is aimed at a more market-oriented mechanism. The first is to maintain the RMB exchange rate basically stable. Is a top priority on the Elimination of revaluation of the yuan is expected to maintain the RMB exchange rate basically stable RMB exchange rate appreciation for the reform of RMB exchange rate formation mechanism and create external conditions for liberal. Reform of the RMB exchange rate formation mechanism is a step-by-step process, rather than over-frequent fluctuations, to determine the suitability of its main criteria is it with the relationship between the real economy, that is, the real economy in this exchange rate system and whether the exchange rate under the benign operation , Whether economic growth can be sustained. Therefore, the exchange rate mechanism should be subordinated to and serve the stability and economic growth, with the overall financial reform process to adapt. The second is the gradual transition to a free foreign exchange settlement and sales system. Bank of mandatory foreign exchange settlement and sales and foreign exchange markets is leading to the closure of the RMB exchange rate formation mechanism of missing an important cause. As a result, domestic enterprises should be compulsory foreign exchange settlement and sales system of gradual transition to the will of the settlement, the entire foreign exchange market based on supply and demand to form an effective and at the same time so that the price flexibility to be able to guide and regulate the relationship between supply and demand. Third, carefully handle the various relationships. Into consideration the new situation of world economy and international factors such as changes in the financial markets, and market-oriented interest rate reform, control of the capital account and relax the yuan freely convertible and other match to advance short-term money market instruments. The fourth is a stable market environment. Frequent and excessive exchange rate volatility is not conducive to carry out financial reforms. If the expected appreciation of the long-standing pressure, will not be able to launch the RMB exchange rate formation mechanism reform. Fifth, a sound financial system. Only in a sound financial system conditions, in order to implement the RMB exchange rate formation mechanism of the market step by step in order to maintain stability and growth. Long-term planning.The first is the realization of free convertibility of the Yuan. Free convertibility of the Yuan by the current account to capital account convertible, in accordance with the international community and opening up the capital account of the experiences and lessons, combined with China's current account convertibility of RMB experience, our country can adopt the following strategies and steps: first to relax the long-term capital outflow Into the control, and then open up the short-term capital outflow control; opening of the first securities investment control, and then open up the control of bank credit; opening of the first outside the control of fund-raising, and then open non-resident in the territory of the fund-raising Control; to open up the control of financial institutions, re-open to non-financial institutions and individual residents of the control. The second is the implementation of the exchange rate target zone system. In order to increase the flexibility of the RMB exchange rate and flexibility in the exchange rate management to consider the implementation of the exchange rate target zone system of floating exchange rates is about to a certain limit.2. Making depth analysis of fundamental principle about fully currency exchanging, and seeking its general regularity. Describing the current situation towards the process of exchanging usual items and the current situation towards capital items, and summarizing causation that the usual items could be exchanged in advance, and analyzing the necessary qualification about carrying out capital items exchanging entirely.China to advance the realization of the RMB current account fully convertible, because with the following series of objective economic conditions.First of all, unified compared to the RMB exchange rate reflect the true market supply and demand. In 1994, after the RMB exchange rate steadily fully illustrates this point. RMB exchange rate of rationality that enable it to better leverage the exchange rate to play a role in regulating and promoting the optimization of economic structure, balance of payments and foreign exchange balance of rational resource allocation for the current account fully convertible to create a good Environment.Second, the rapid development of foreign trade, foreign exchange reserves increasing number of our strong international liquidity, so as to the current account fully convertible laid a solid foundation.In contrast, in China's capital account and opening up the issue more carefully. International experience has shown that a completely open capital account requires certain conditions, and China is only partially realized capital account convertible, to achieve full capital account convertible condition is not yet ripe. Does not have the conditions, premature opening of capital account transactions, easily lead to currency crisis or even a financial crisis. As a result, must take care not to treat the opening up of capital account.3. Summing up experiences and lessons of other developing countries on the basis of a comprehensive measure of our country to achieve full convertibility of the RMB the pros and cons, our analysis is now available and do not have the conditions to establish the concept of risk awareness and to ensure that the renminbi fully Exchange successfully achieve the objectives of security.Currency convertibility could have their own economies, the regional economy as a whole or even the world economy brought about by the tremendous influence and impact, therefore, we should fully understand and grasp the full convertibility of the RMB may bring negative impact on our country, so as to actively and carefully In the face of the renminbi fully convertible.First of all, the Yuan fully convertible will affect the independence of the central bank's monetary policy. The full implementation of the renminbi freely convertible means that the full liberalization of financial markets, the central bank will be confronted with domestic and international financial markets, the double pressure. Second, the massive influx of foreign capital will bring about a greater risk of external debt. The Yuan fully convertible, the residents of the fund-raising channels and more convenient, which will increase its investment and fund-raising blindness; China's rapid economic development to attract more foreign investment, China's increased debt burden and risks; and The opening of the financial markets will inevitably lead to the massive influx of international hot money, which will enable our country's foreign debt burden, increase the risk. Third, the Yuan fully convertible could lead to imbalance in the balance of payments, exchange rates and interest rates chaotic system. Full convertibility of the Yuan could trigger a flight of domestic capital and financial order in the chaos, the international economic crisis and other issues of import, which is no country in the process of economic development, do not want to see.Although full convertibility of the RMB has its negative impact on other developing countries, but experience tells us that the currency fully convertible on a country's economy will have many positive roles. To achieve full convertibility of the Yuan this goal will be to bring our country a series of favorable economic impact.First of all, to realize the full convertibility of the Yuan will help China attract foreign investment. Second, the renminbi fully convertible, Chinese citizens can have the opportunity to the international scope of its securities portfolio of assets spread and reduce investment risk. Third, the Yuan fully convertible in favor of strengthening the market economy sense. Fourth, the Yuan fully convertible could enhance China's international prestige and status.3. After consolidation about experiences of other developing countries, weighing the advantages and disadvantages of RMB exchanging fully. Summarizing our existed and non-existed qualifications, and to develop a strong sense of risk, to guarantee the smooth realization of RMB exchanging entirely.Currency convertibility could have their own economies, the regional economy as a whole or even the world economy brought about by the tremendous influence and impact, therefore, we should fully understand and grasp the full convertibility of the RMB may bring negative impact on our country, so as to actively and carefully In the face of the renminbi fully convertible.First of all, the Yuan fully convertible will affect the independence of the central bank's monetary policy. The full implementation of the renminbi freely convertible means that the full liberalization of financial markets, the central bank will be confronted with domestic and international financial markets, the double pressure. Second, the massive influx of foreign capital will bring about a greater risk of external debt. The Yuan fully convertible, the residents of the fund-raising channels and more convenient, which will increase its investment and fund-raising blindness; China's rapid economic development to attract more foreign investment, China's increased debt burden and risks; and The opening of the financial markets will inevitably lead to the massive influx of international hot money, which will enable our country's foreign debt burden, increase the risk. Third, the Yuan fully convertible could lead to imbalance in the balance of payments, exchange rates and interest rates chaotic system. Full convertibility of the Yuan could trigger a flight of domestic capital and financial order in the chaos, the international economic crisis and other issues of import, which is no country in the process of economic development, do not want to see.Although full convertibility of the RMB has its negative impact on other developing countries, but experience tells us that the currency fully convertible on a country's economy will have many positive roles. To achieve full convertibility of the Yuan this goal will be to bring our country a series of favorable economic impact.First of all, to realize the full convertibility of the Yuan will help China attract foreign investment. Second, the renminbi fully convertible, Chinese citizens can have the opportunity to the international scope of its securities portfolio of assets spread and reduce investment risk. Third, the Yuan fully convertible in favor of strengthening the market economy sense. Fourth, the Yuan fully convertible could enhance China's international prestige and status.4. Currency fully exchange is closely with internationalization. Overseas has a certain RMB flowing in order to economic development and the good image of RMB. And the international status in future of RMB become more and more important and attention. Therefore, to realize RMB fully exchange meanwhile should create the conditions to promote its international goal realization. Among the process of realizing RMB exchanging fully and internationalization, we can arrange our strategic creatively, to make the two targets mutually beget each other, and blend together in harmony, and go hand in hand.