The Study On The Influence Of RMB Appreciation On China's Foreign Trade

As globalization and integration of intemational financial market has proceed forward which accompany by the deepened marketization.The exchange rate which is one important part of international price system has won more and more attention.It connects each country together.Since 2003,under the background in US dollar exchange rate's fall,the United States and Japan has being accused China through the underestimate of Renminbi to carry on the unfair foreign trade.From July 2005,our country started to practice the new exchange rate system and Renminbi independently revalues 2%.This has aroused largely attentions and interests.This paper calculated the real effective exchange rate in 1985～2007 which is calculated depended on the proportion of Chinese trade partner's bilateral trade in china's total trade,and the proportion changed once a year,the trading parters chose are 16 countries which have largerbilateral trade volume between China.The exchange rate of RBM against foreign currency used is direct quotation.The price index chosen is the consumer price index.And then this paper analyzed long-term impact of real exchange rate on Chinese foreign trade,we choose USA as a example and study the impact of bilateral real exchange rate on bilateral trade by constructing an econometric model.On the basis of the above analysis we concluded that the impact of bilateral exchange rate on bilateral export is exist but narrow;while on bilateral import is not significant.While using the same method we analyzed the impact of RMB REER on china's total international trade,the conclusion is that the impact of RMB REER on total export is not exist while on total import is not significant.Finally,this paper analyzed reasons deeply and gives some suggestion on the basis of above analysis.