The Research Of The Relationship Between Interest Rate And Exchange Rate In The Process Of China’s Market-oriented Reform Of RMB Exchange Rate

In an open economic environment, interest rates market and exchangerate market allocation of resources to run a country, economic situation of theeffective reflection. Interest rate and currency exchange rate is the price of two forms;they are interconnected and influence each other, the national macro-control, tomaintain economic security and financial stability, an important policytool. Internal economic equilibrium interest rate policy is the foundation of theexternal economic equilibrium exchange rate policy is the key. For the linkagebetween interest rates and exchange rates have a good practical significance ofresearch, market-oriented reforms in China’s exchange rate during2005, theexchange rate system reform is a milestone event, before and after thisreform linkage between interest rates and exchange rates are a significant changesin the system and improve the policy has some guidance. In this paper, January1994-August2011period the RMB interest rate and exchange rate data for thestudy, and in July2005reform of the RMB exchange rate system time of thenode, the time the study is divided into two stages were compared. Eventually come:RMB real interest rates and real effective exchange rate weak linkagebetween, although the exchange rate system, market-oriented reforms topromote the linkage between the two, but this relationship isrelatively weak interaction； which the interest rate market and we are now market isnot fully liberalized and exchange rates have a great relationship.