The Choice Of Rmb Exchange Rate System Reform

On July 21 in 2005, Chinese People's Bank announced that, at 19:00 of July 21 in 2005, the trading price of USD to RMB was adjusted to 8.11 RMB for USD 1 .Renminbi would be no longer fixed on the USD, China starts to take the market supply as the foundation, consulting a basket of currency to carry on the floating rate of exchange system to regulate. The curtain of reform on the RMB exchange rate system which has been appealed with the great controversy for a long time commences slowly. The paper is derived from those hot questions of international economics on currency crisis of emerging market and the theory on RMB appreciation, and elaborates on the problem of RMB exchange rate regime choice. According to the development course of the regime of international exchange rate and development trend that choose of system of exchange rate at present, the paper has draw the hypothesis of the bipolar view and has testified against it; It presents a new theory of co-existence-and-sequence exchange rate system and argues that the choice of exchange rate system is a dynamic course of conversion and the choice of exchange rate system is rested on specific condition. Then the paper turns to the choice of RMB exchange rate system and analyzes the foundation factors of determination of RMB exchange rate system; On account of the bipolar view influence, author argues that the RMB exchange rate system has evolved de facto peg dollar exchange rate system.Under the circumstance of finance further opening in China, the cost of the system maintenance will get more and the risk also will get high, so the system of RMB exchange rate has the necessity of re-choice. Under the circumstance of international finance globalization and national financial further opening, the reform of RMB exchange rate system has great influence and it needs full considerations. Meanwhile, it combines closely the trend of international exchangerate system evolution and objective reality of China, especially pays attention to the...