Property Right Analyze Of Rmb's Free Convertibility

After worldly financial crisis,China plays more and more important role in world economy recovery, and RMB has already begun its journey to the whole world. Therefore, research how to push forward RMB freely convertible becomes a key task. Why RMB is still not freely convertible is that on foreign exchange trading market, traders including state-owned enterprise and state-funded commercial bank sells all of the foreign exchange to the central bank for avoid exchange rate risks, which makes central bank become the last holder to entail all exchange rate risks. Thus, ours foreign exchange market has inherent design problem and can not reflect the real supply and demand of traders, which is the primary reason of why real exchange rate is hard to realize. I consider that traders of foreign exchange should own real property right so that they can entail exchange risks, not only release foreign control and improve financial order. This dissertation analyze the fundamental property right evolution of interest group which forward RMB freely convertibility and put forward some suggestions. It is very meaningful for which how to forward RMB freely convertible.Chapter one introduces some fundamental theory, including definitions about institution,property right and freely convertible, also explains RMB exchange rate from neo-institutional economics basis. Any transaction means transfer or trade property right, thus, foreign exchange is the same and exchange rate is a price which is determined by supply and demand of foreign exchange.Chapter two gives introduction to RMB's journey from wholly inconvertibility to freely convertible below current account which interest group's property right evolution push forward. Before 1978, import and export trading was completely regulated by government, corresponding, RMB is inconvertible. Before 1994, property right evolution starts, therefore, foreign exchange readjustment market appear on which traders can trade foreign exchange quota. After 1994, property right evolution upgrades, mandatory exchange settlement and sales system substitutes foreign exchange readjustment market.Chapter three analyze the difficulty of current RMB exchange rate institution reformation, contains the property rights problem behind current settlement and sale system, the property rights problem behind the inter-bank foreign exchange market and the property rights of reserve assets which including whether it belongs to whole people or central bank, can 25 trillion reserve assets be divided to each person and how to explicit the property right of reserve assets. The last chapter offers a proposal about RMB convertible route and some suggestions about property right reformation of state-own enterprises and state-funded commercial bank. Anyways, my opinion about RMB convertible route plan,the reformation arrangements of property rights about state-owned company and bank,especially the clarification reserve assets's property rights is defective and waiting to develop.