Impacts Of RMB Exchange Rate Fluctuation On China's Overall Economy And Different Regions

It has been 4 years since the reform of the RMB exchange rate in July 2005. The RMB exchange rate was expected to appreciate mainly against the US dollar at the beginning. But the expectation of the RMB appreciation has been weakened now. And as the implementation of the Federal Reserve and U.S. Treasury Department's quantitative easing monetary policy, the international status of the US dollar is damaged. The EU is China's biggest trading partner now. We have closer economic links with many countries. Hence, it is necessary to study how fluctuations in the RMB exchange rate (not limited to against the U.S. dollar) influence all aspects of our economy. Because China has a vast territory and different regions is experiencing different stages of development. We can't see China as a whole. Hence, this paper explores the overall impact of the RMB exchange rate fluctuations on China's economy, and different effects on different regions. It contains four main parts:Part 1, including chapter 1, 2 and 3, is the basis part. The first chapter introduces the topic's background, the implication of research, research methodology, and the main content. In Chapter 2, we introduce related researches both domestic and abroad. Chapter 3 talks about what drives the movements of the RMB exchange rate and the movements of the RMB since the reform of the RMB exchange rate. Part 2, including Chapter 4, is an important part of the paper. It studies the general impacts of exchange rate fluctuation on economy from the angle of trade, investment, industry and employment, and then explores the overall impact of the RMB exchange rate fluctuations on China's economy. Part 3, including Chapter 5, divides our country into 4 regions, east, west, middle and northeast. According to different levels of economic development in different regions, and analyzes the different effects of the RMB exchange rate fluctuations on different regions. Finally, Part 4 (Chapter 6) according to the analysis above, discusses the likely measures that the governments and firms could adopt when facing unfavorable effects of the RMB exchange rate fluctuations.In this paper, the value of innovation includes: 1) different from the existing research to see China as a whole, this paper discuss the different effects of the RMB exchange rate fluctuations on different regions. 2) most of the studies talked about the appreciation of the RMB against the U.S. dollar. We study the impacts of the RMB fluctuation against different currencies. 3) according to different levels of economic development in different regions, we supply with suggestions.