Rmb Exchange Rate System Reform And China's Foreign Trade Analysis

The exchange rate regime on July 21st, 2005 is the beginning of the new round ofRMB exchange rate regime, while in recent years the development of Chinese foreigntrade is swift and violent and accumulates a large amount of trade surplus. Foreign tradeand RMB exchange rate regime are two important issues in the process of China'sopening to the outside. This paper tries to inquire the relations of the two ones. At firstthis paper gives an overview of theories of exchange rate regime choice, then it analysesthe transition of RMB exchange rate regime and we profoundly understand theimportant meaning of this new exchange rate regime. Secondly, viewing from theforeign trade data after exchange rate regime reform of our country, the continuingRMB revaluation urges import trade to increase largely, and hasn't brought export tradelargely to slow down. Fast growth pattern of Chinese foreign trade has not changed.This RMB exchange rate regime reform has little relevance to Chinese foreign tradevalue, but it has some improvement function to trade structure. At last for promotingforeign trade to develop well, the writer presents some specific countermeasureproposals to further consummate RMB exchange rate regime.