The Wto And The Imf Under The Framework Of The Rmb Exchange Rate Research

As American Currency Reform for Fair Trade Act being public, the focus of international society has been put on China's exchange rate and its currency regime. It is said that China deliberately undervalues its currency, and manipulates its exchange-rate for purposes of gaining an unfair competitive advantage in international trade, which violates International Monetary Fund rules and meets the WTO rules for a prohibited export subsidy.The paper is composed of five chapters as follows.Chapter One discusses exchange rate and the border of exchange rate sovereignty. The first question to study RMB bi exchange rate in the framework of IMF is clarifying the definition of exchange rate and the limitation of the exchange rate. Therefore, this chapter will focus on exchange rate and the exchange rate sovereignty which is the foundation of the research on RMB exchange system.Chapter Two explores the working division of IMF and World Trade Organization (referred as"WTO") on exchange rate. According to Currency Reform for Fair Trade Act, RMB Exchange Rate System could be treated as a kind of subsidy under WTO Subsidies and the authority of the Unite States would like to submit the exchange rate complaint to WTO. On this occasion, it is necessary and realistic to discuss the division and border of the two organizations regarding to this problem. This chapter will analyze the related articles in Dispute Solution Understanding (referred as"DSU") and General Agreement on Tariffs and Trade (referred as"GATT") , in order to find the legal argument and establish a defense for P.R. China.Chapter Three explores the differences between the RMB exchange rate and export subsidy. By Countervailing Measures Agreement (SCMA), this chapter will analyze the topic in financial support, interest endowment and specificity respectively. Although it has some risks to affirm this problem as the financial support, RMB exchange rate system cannot be treated as interest endowment or having specificity.Chapter Four discusses the Currency Manipulation and its requirements. RMB exchange rate mechanism is criticized that it constitutes currency manipulation because of the tests for"currency manipulation"prohibited by IMF. And this chapter would further elaborates on the differences and connections between RMB exchange rate mechanism and the violation of IMF's legal obligations, then it is concluded that RMB exchange rate mechanism cannot constitute the currency manipulation in IMF framework.Chapter Five discusses the advices about the RMB exchange rate mechanism. This chapter will comment on the results of RMB exchange rate reform and proposes suggestions relevant to this reform from the perspectives of opening the capital account, enhancing capital mobility and current account improvement. The author anticipates that this reform can bring an amicable international environment for our reform on foreign exchange system after discussion on the existing system and reform on exchange rate.