The Impact Of RMB's Real Effective Exchange Rate Volatility On Xinjiang's Foreign Trade Development

With increasing continually of the economic globalization, the of foreign trade's stable development has become to the important guarantee of the countries and regions achieving the economic development and external balance. Exchange rate is an important factor of foreign trade which plays an important role in the balance of economy's internal and external and rapidly development of a country and regional. Therefore, the influence of the volatility of the exchange rate to foreign trade has always been a major topic of the extensive research of the international economic circles and has got the attention of the world's every government. At the same time, with the increasingly acceleration of the diversification trend of the international economic, the effective exchange rate will more accurately reflect the value of a currency and the competitiveness of the international economy.China has a vast territory. The eastern coastal and western inland provinces have a vast difference in the location, resources, environment, national policy and etc. The development level of the provinces is also difference. Xinjiang lies in the northwest border region of China, while it is a area of China's remote and backward. But it is located in the Asia-Europe abdomen and it has a unique advantage in the use of resources and markets around the country. The rise of the Central Asian countries provides a rare historical opportunity to Xinjiang's economic development. Xinjiang's foreign trade is an important part of the economic development. Therefore the study of fluctuations of the real effective exchange rate to the development of Xinjiang's foreign trade is necessary.Based on the actual situation in Xinjiang's foreign trade, I measured the index of the RMB'S real effective exchange rate and parsed it. I Use a combination of theoretical and empirical method to practically and in-depth analysis the impact of the volatility of the real effective exchange rate to foreign trade in Xinjiang. And based on the results, I will propose to the related suggestions of promoting the development of Xinjiang's foreign trade and positive exchange rate policies, in order to stimulate the development of Xinjiang's economic.