The Research On Effects Of International Monetary And Financial Law On China’s Foreign Exchange System

The international monetary and financial law is the sum of legal norms that adjust to international monetary and financial relationships. Its adjustment range is broad, covering several legal systems that include international current exchange, credit, repayment methods, settlement, financial market and monetary instrument.This paper will mainly introduce the exchange rate, especially about the Chinese RMB exchange rate. The latter is the result of international economic exchange activities which have been growing at a rapid rate. This article mainly studies on the next respect:in the first chapter, it provides the overall introduction on the international monetary and financial law. In the second chapter, this paper deals with the evolution of the RMB exchange rate system, and drew out what the current RMB exchange system faces in relation to international law issues. In the third chapter, we discussed WTO and IMF’s jurisdiction over exchange rate, and discussed China has acted consistent with its international obligations. It is without a doubt that supervision on the exchange rate is the key role of the IMF. The IMF absolutely exercises authority and give binding judgment to the parties concerned. Besides, when talking about whether the exchange rate policies constitute a subsidy under WTO Subsidies and Countervailing Measures Agreement (SCMA), WTO is considered to have the jurisdiction also. Involvement of both organizations offered proposals for a range of RMB exchange rate legal issues that had been proposed.Although the Chinese RMB exchange rate regimes are legitimate under the framework of the international law, but pertaining from the realities of international relations and the situation of Chinese economic development, there is a need to reform the Chinese RMB exchange rate regime. The reconstruction of the international monetary system and the consummation of the RMB exchange rate formation mechanism should be promoted, in order to create a good international law environment for the reform of RMB exchange rate system.