Study On Choice Of RMB Exchange Rate Regime

With the continuous development of the world economy, the globalization of economy has become an irreversible trend, exchanging rate as an important variables to regulate external economy in open economy, the speed and the level of one country's economy development has a very great relationship with one's exchange rate,through adjusting one's exchange rates the government can effectively regulate its economy.Choose the correct rate system is very important for any country; different countries should chosen suitable exchange rate system in light of its actual conditions and different period. The present exchange rate system has many defects, some of those defects will produce a lot of adverse impact, for example, because of the lack of exchange rate flexibility,underdeveloped financial system and a not perfect legal system, all of them seriously restrict the role of monetary policy in China and also hampered the development of our national economy. While China's exchange rate regime constantly update and turn perfect, but China's current exchange rate system can't really suitable for economic development, there are so many system need further reform, reform the current exchange rate system is imminent and our the task is still arduous.In recent years, with the rapid development of China's economy and the trade surplus enlarged, make the RMB exchange rate reform became a hot issue. Since the Asian financial crisis in 1997 after the outbreak, Successive years international finance speculation has been made RMB depreciated sharply, after 2003 the speculation made RMB rising sharply. On July 21, 2005, China began to adopt the method that based on market supply and demand reference to a basket of currencies, managed to adjust floating exchange rate system. Based on such a background of international environment this paper through existing research results at home and abroad; from the Angle of endogenous to study currency deciding factor of exchange regime choice, meanwhile deeply analyzed the RMB exchange rate regime reform process to explore the reform of RMB exchange rate system future path and also put forward the corresponding policy recommendations.