Rmb Under The Capital Account Convertibility Of Its Strategy Research

It is the final target of the refOrm in the Foreign Exchange System of ourcountry that RMB will become the free exchange currency Through trade andinvestment, China has become more and more open and integrated with the rest ofthe world. In l996, China had removed all the outstanding restrictions on currentaccouni intemational transactions and accept the obligations of Article VllI of IMF.How to cany out the whole convertibility of KMB through carring out theconvertibility of ariB in the capital accoUn becomes the next centre target. Whyshould we carry out the convertibility of RMB? What are the conditions of theconvertibility in currency in the Capital account? What is the sequence of all kindsof reforms? All these above questions are the current tasks which need to beseriously researched and gradually implemented.Focusing dn the research subject of how the convertibility of RMB in thecaPital account can be cAned out. Firstly, the article analyzes several behavioursof the limitation of the controlled capital accoun, and hides the inevitability of theconvertibility of capital account for the following content. Secondly, itsummarizes the behaviours and experience of openned the capital account in thedifferent countries, and especially illustrated what are the experience and lessonsWhen the capital account was openned in the developed countries such as NewZealand and Spain and the developing countries such as Indonesia and Chilly.Thirdly, aiming at why the Asian Financial Crisis haPpened recently, the articlegives us the detailed analyse. Especially, comparing and analyzing the same anddifference between our country and the other counries in which there was a crisis,it still pointes out why our country was impacted less.Then, analyzing the inevitability and risk of the convertibility of ariB in caPitalaccount, the wticle fetches out What is the countermeasure of the convertibility ofRMB in caPital account and how we can cny oul it. It conditionally analyzes the8 aspects and obviously points out an forward way. At last, it sununed up andtells us what is the future of freely exchanged currency, MiB.The prOject of the refOrm of convertibiIity of RMB in the caPital account iscomplicated and relative to all aspects, and it needs to be continuously researchedand corrected. I hope I can contribute to it by the article.