Exchange Rate System In The Further Opening Up Of China's Financial Choice

The thesis made an analysis on the now RMB exchange rate from the international exchange rate regime development In practice, it is pegged to US dollar fixed exchange rate, no matter it is called as managed floating exchange rate by its name. In the background of the opening-up of the financial industry, it is both costly and risky to maintain this exchange rate regime. So it is necessary to make a new choice for the exchange rate regime.It is no easy job for the reform of the exchange rate regime.. It needs the theoretical approach and the consideration on the development of international exchange rate regime and on the actual situation of our country. The thesis analysed on the fact that it is no good to have the fixed exchange rate regime so far as the economic leverage is concerned. Moreover, we are not yet ready for floating exchange rate regime. So we have to take a "middle way "between the fixed and floating rate. The exchange rate target zone is a suitable arrangement for Chinese financial industry in the opening up process. It not only has the advantage of the fixed and floating rate regime, but also it can coordinate the exchange rate policy and monetary policy and realize the internal and external balance of the economy. It is also in line with the development of the gradual reform process in our country. Based on the necessity and feasibility of the exchange rate target zone,, the thesis further pointed out the detailed suggestion to adopt exchange rate target zone from the view of the central exchange rate, the determination of variation zone, exchange rate intervention and the matched measures and policies.