The Studies On Efficiency Of Foreign Exchange Market And Construction Of Exchange System After The Reform Of Chinese Exchange Rate In 2005

The People's Bank of China announced the RMB exchange rate mechanism reform programme on July, 2005: the RMB exchange rate is no longer pegged U.S. dollar, but the introduction of more flexible, based on market supply and demand, adjusting the reference to a basket of currencies, managed floating rate mechanism. After this reform, the Chinese exchange market has established new system and obtained notable fruit, as well as accelerated the Chinese economic to some extents.This thesis starts with consideration of the efficient foreign exchange market, and analyzes the feature of efficient foreign exchange market to form the preliminary estimation that the Chinese foreign exchange market is inefficient. And then the thesis tests efficiency of Chinese exchange market with the empirical data from the reform of year 2005 and confirms the formal analysis. Based on the theoretical analysis and empirical result, this thesis proposes that the micro-inefficiency of Chinese exchange market is a result of macro-economic objectives. Finally, the thesis proposes some political advice for further construction of Chinese exchange market.