The Orientation Of The Rmb Exchange Rate And The Exchange Rate Regime Choice

Since 2002 Japanese Chancellor started revolt about RMB rate of exchange problem, the disputation concerning revalue of RMB rate of exchange is increasing. Some people assert RMB appreciation, but still others object appreciation; Some assert fix the rate of exchange system, and others assert floating rate of exchange system; Some assert that the exchange rate of RMB should continue to keep begging the US$ , and others believe that the exchange rate of RMB should be begged to a currency basket. What is the source of RMB appreciating actually? What influence of RMB appreciation to the Chinese economy? What we can learn from this RMB appreciation? In this article, we would like to discuss about these problems. The structure of this paper is that, in the firstly part of the article, we shall the mean historical of adjustment of RMB exchange rate; in the second part, we shall prove that the appreciation of RMB is the unavoidable trend through our analysis of international financial theory and RMB exchange rate system; in the third part, we shall analyze the influence of RMB appreciation to the Chinese economy; in the fourth part, we shall give some of consideration of RMB exchange rate system according to our above analysis; in the fifth part, we shall explore the future option of RMB exchange rate system and meanwhile affirm that the RMB exchange rate should be gradually floating under the government control and meanwhile expect that Chinses government should actively promote internationalization of RMB.