Study On The Impact Of RMB Appreciation On Chinese Export Of Toy

Less people attentioned RMB exchange rate before 2005, because China didn't enter the world entirely and RMB exchange rate fluctuate in a little range. In order to make RMB exchange rate reflect Chinese economics'situation and serve for Chinese economics'development, our government also make some adjustment and reformation. At January 1th, 1994, China changed foreign exchange system, called off RMB official exchange rate and implemented single exchange rate. In that time , RMB exchange rate was 1$=8.7RMB. At December 1th, 1996, Chinese government announced that our nation accepted WTO 8th clausal obligation, and implement RMB convertibility in the current account. At July 21th, 2005, Chinese government announced that our nation implemented floating rate system in management, which base at market supply and demand, consult total monetary. In that time, RMB exchange rate was 1$=8.11RMB, appreciation of 2%. Since that, RMB exchange rate entered in a way of appreciation, and the problem of RMB exchange rate was got more attention. USA subprime mortgage loan break out. In order to reduce its'impact to China, Chinese government use the policy of immobility exchange rate again. Because of that, many people neglect that RMB exchange rate impact Chinese export, but REER still rise. Actually RMB exchange rate rise all the time, but it often be neglected. At June 19th, 2010, the people's bank of China announced that resume the elasticity of RME exchange rate, and the problem of RMB exchange rate was attention by many people again. So as the problem that the impact of the rising RMB exchange rate on Chinese export. Chinese export commodities are labor-intensive all the time, and the export of toy have larger share. So researching that the impact of the rising RMB exchange rate on Chinese export of toy is targeted.The paper which base on this consideration research the impact of the rising RMB exchange rate on Chinese export of toy. The first part introduces that the theory of exchange rate and the researching literature and it is foundation of the paper's research. The second part introduces the process of the change of RMB exchange rate and expounds the reason of the rising RMB exchange rate. The third part research the positive and negative impact of the rising RMB exchange rate on Chinese export of toy. The fourth part research the connection of REER,NYMEX and RME exchange rate, and find the impact of REER on Chinese export of toy. The fifth part is the conclusion of the paper and the policy advice.