Study Of The Rmb Exchange Rate System

Nowadays the world is an opening world, the economic globalization is the irreversible tide of economic development of the world, and the degree of the finance opening will be strengthened further too. As the central variable of the open economy, the choice of exchange rate regime is essential to any country. The selection of RMB exchange rate system is now and will be one of the most important issues for our country to carry out economic policies. A proper exchange rate system selection is the key to the continuous development of our country. The perfect exchange rate system can promote international trade and the flowing of capital. The improper exchange regime is the important reason of financial crisis. In order to establish and improve the socialist market economic system, and enable the market to fully play its role in resource allocation, China must reform the exchange rate regime. The general objective of the RMB exchange rate reform is to establish a sound managed floating exchange rate system based on market supply and demand, and maintain a basic stability of the RMB exchange rate on a rational, balanced level. A drastic fluctuation of the RMB exchange rate will bring great impact on China's economic and financial stability, and will not conform to China's fundamental interests. A better reform to the RMB exchange rate formation mechanism will make it absolutely impossible for the emergence of this situation. The RMB exchange rate regime should implement the real regulated, managed floating exchange rate regime transited from fixed exchange rate system. The long-term goal of our reform is to establish the independent floating exchange rate system. The reform must adhere to the principle of gradual progress. The reform focuses on the mechanism to form the RMB exchange rate.This paper is comprised of five chapters:1. Introduction2. Exchange Rate System Selection Theories and the Evolution of China's RMB Exchange Rate Reforms3. The Analysis of the RMB Exchange Rate Regime between 1994 and 20054. The New Regulated, Managed Floating Exchange Rate Regime Based on Market Supply and Demand and in Reference to a Basket of Currencies5. The Multiple Expression about the RMB Exchange Rate RegimeThrough the study of these above five chapters, the conclusion is as follows: The reform of the RMB exchange rate regime must be proceeded in an active, controllable and gradual way. We should perfect the RMB exchange rate...