Rmb Exchange Rate System - A Comment On Yuan Appreciation

Recently, America, Japan, Europe and the world economy have been on the decline, but in China, foreign capital inflows in great amounts, foreign trade keeps continuous surplus, foreign reserve rapidly increases, national economy rises at top speed, and Renminbi appreciation anticipation replaces Renminbi depreciation anticipation. However, the great contrast between the decline of world economy and increase of Chinese economy makes "China factor" the hotspot of the world economy, and Renminbi exchange rate is the hottest of hotspot as the tache of open-economy.Renminbi exchange rate is the hotspot of international society due to Renminbi exchange rate system besides political and economic factors. On account of a variety of controls, Renminbi exchange rate level is really likely to deviate from the real and efficient exchange rate and can not reflect the real foreign exchange supply and demand relation. Renminbi exchange rate is neither the real fixed exchange rate system, nor the real floating exchange rate system. But it's a limited floating exchange rate system under the Government's control when the time is opportune.This paper probes into Renminbi exchange rate system's reform direction and Renminbi exchange rate appreciation problem on this basis. This paper consists of five chapters: The first chapter introduces exchange rate's concept and exchange rate system theories. The second chapter looks back on the vicissitude history of international exchange rate system and Renminbi exchange rate system. The third chapter probes into the problems in the current Renminbi exchange rate system. The fourth chapter discusses the reform direction of Renminbi exchange rate system.The fifth chapter analyzes the Renminbi appreciation anticipation. Finally, this paper points out China should realize relatively freely floating Renminbi exchange rate system with regard to currency policy independence and gradually open capital account through limited amending trilemma theorem, and impove Renminbi exchange rate system's scientific nature through Pareto betterment.