Rmb Real Effective Exchange Rate Changes And China's Foreign Trade Research

Reel efficient exchange rate is regarded as a measurement of trade goods competence in international market. Its fluctuation can lead to a country' s financial assets price change directly and guide the international capital flows, thereby influences a country' s sustainable development of trade. This paper confines itself to studying the impact of exchange rate volatility on trade flow with econometric models and related trade theories, and draws a conclusion that there is no long-term steady relationship between Reel efficient exchange rate and trade flow because of our country' s distinct economic structure. Then the paper also makes an elaboration on trade structure effects of exchange rate volatility, and points out that exchange rate volatility has exerted some effects on the adjustment and optimization of trade structure. Finally, conclusions have been made, and advisements and suggestions have also been raised.