Rmb Exchange Rate System And Establish An Effective Mechanism For System Analysis

Exchange rate regime is always one of the contents disputed in economics field .It is continuously developed and innovated following international financial environment change and global economic progress. Chinese exchange rate regime is also reformed many times according to economic & social requirements. In view of this, to study how to choose a suitable RMB exchange rate regime considering Chinese economic & state situation with the references of exchange rate regime theories and set up an effective RMB exchange rate regime stage by stage is meaningful for economic development of China.Started from the literature of theories, this article firstly summarized the development of latter-day exchange rate regime theoretically and researched about RMB exchange rate regime, and pointed out that there's no perfect exchange regime exists, different choices of exchange rate regime were in distinct social stages associated with economic development. Then it analyzed the possible factors which could affect the choosing of RMB exchange rate regime and got a conclusion that Bipolar View & Target Zone is not applicable in China, Managed Float was the most applicable one at present phase. It was in favor of establishing effective RMB exchange rate regime and transiting smoothly to floating exchange rate eventually. In the end, this article pointed out existing problems which should be noticed in current RMB managed float regime: the reform of exchange rate regime was not equal to exchange adjustment and should be prior to RMB revaluation; Chinese monetary authority could adjust even control effectively RMB exchange rate fluctuation through adjusting different foreign currency proportions in foreign exchange reserves; the conflict between market exchange rate and adjustment intervened by China monetary authority could possibly be an uncertain factor which would affect establishing effective RMB exchange rate regime. Therefore, it was quite necessary to take a series of accompanying institutional arrangements to establish and perfect effective RMB exchange rate system.