Legal Issue Of Rmb Exchange Rate Research

Exchange rate is the results of international economic exchanges growing and frequent. As countries have their own independent monetary and monetary system, one country's currency need to convert into another country's currency in international circulation. Exchange rate is the rate with which a currency's value converts to another currency's value, which is one currency's prices express another currency's prices. Exchange rate system is the method to determine the parity between a country's currency and other countries' currency, the exchange rate arrangement is a manifestation of the sovereignty of a country's currency. The parity between one country's currency and another country's currency can be directly determined by law.From the beginning of this century, Chinese economic grows rapidly, the RMB exchange rate issue has become the hot issues in the economics trade between China and the US, even in the international economic; the United States and other Western countries accuse the RMB exchange rate against obligations of the international law and request RMB rises rapidly. From a legal view, the main criticism of the RMB exchange rate around the two main lines: one criticism is accusing China to manipulate currency and cause external instability, therefore it violates the relevant provisions and decisions of IMF; the other criticism is accusing China's undervalued currency violates the SCM Agreement and other relevant rules of WTO. In this regard, we should analysis whether the RMB exchange rate regime violates the relevant of international law from the legal view; for the pressure of RMB exchange rate system and the demand of economic development at home and abroad, to actively explore the reform regime of RMB exchange rate.This paper describes the evolution of the RMB exchange rate system, and leads to the problems of the RMB exchange rate regime in international law. Then according to IMF's agreement and WTO's rules we can analysis the RMB exchange rate whether against the relevant norms of international law. Through the IMF agreement and the New Decisions on Bilateral Surveillance over Members' Policy we can analysis and obtained the conclusion that the RMB exchange rate regime is the legal regime within the framework of IMF; by analyzing the SCM Agreement under WTO and any other pertinent obligations, we believe that RMB exchange rate system does not violate the relevant rules of WTO. Although the Chinese RMB exchange rate regime is legitimate under the framework of the international law, from the realities of international relations and the situation of China's economic development, there is need for reform the Chinese RMB exchange rate regime. The reconstruction of the international monetary system and the consummation of the RMB exchange rate formation mechanism should be promoted, in order to create a good international law environment for the reform of RMB exchange rate system.