The Effects Of RMB Exchange Rate On Our Import And Export

Exchange rate as the exchange parity of national currencies on the foreign exchangemarket is an important lever for regulating international trade. On a country’s import/exportbalance and structure, flow of capital access, price levels and even resource configuration inthe world have played a very important role. Since the reform and opening up, with theincrease of China’s opening to the outside world, China’s economy is getting higher andhigher dependence on external, combining research exchange rate and China’s actual situation,analysing the impact of exchange rate movements on China’s import and export trade has atheoretical and practical significance. Through the exchange rate movements on our balanceof trade and trade structure-specific impact of research led to the conclusion that, theappreciation of the RMB exchange rate to some extent, affect China’s import and export trade,and promote the optimization and upgrading of trade structure; But simultaneously also mustpay attention by the exchange rate changes the initiation other factor change to the economythe influence. According to the above and gives the corresponding comment and thesuggestion。Introductory section, this section first describes the background and significance of thethesis. As China’s reform and opening up, especially after joining the WTO economic externaldependence increasing, study the impact of exchange rate fluctuation on China’s foreign tradehas become particularly important. Since1994, several reform of exchange rate regime inChina, at present our country’s exchange rate system is take the market supply and demand asthe foundation, has the management floating exchange rate system. China’s rapid economicdevelopment, import and export trade is also growing rapidly, the Renminbi exchange raterevaluation tendency was still continuing. Afterwards elaborated the paper research mentalityand the research technique, the example has lifted the domestic and foreign related viewpointtheory. Theoretical and practical method, using1994-2011data with charts forms ananalytical study on the effect of exchange rate changes on China’s export and import trade,make relevant countermeasures on China’s economic development.First part，domestic and foreign research present situation. This chapter has introducedforeign domestic relationship between exchange rate movements and the trade balance studyconcluded. Foreign research is divided into three main perspectives: the exchange ratechanges have a negative impact on the trade balance; exchange rate changes conducive to thebalance of trade; exchange rate changes, no long-term significant impact on the trade balance. The domestic research also divides into three kind of types: changes in the Renminbiexchange rate significantly affects the balance of trade; exchange rate movements on thebalance of trade; very little impact. Each of these views are the main representatives of thescholars and their research methods and conclusions. Final summary of this document thepurpose of the study。The second part，overview of exchange rate and import/export trade. This chapterintroduced first the exchange rate and the import-export trade related concept, the theory andthe essential terminology which could use to after chapter elaboration carries on the exampleto lift, explanation. And then in theory set out short-term and long-term impact of exchangerate movements on foreign trade, and swing clear impact of restrictions.Third part, Overview of changes in the exchange rate movements and trade status. Sincethis part first divided three time sections to review the Renminbi exchange rate system and theexchange rate change situation which the reform and open policy our country has adopted.Experience a dual exchange rate system in China to a fixed exchange rate system to thefloating exchange rate system The Renminbi has the depreciation to US dollar exchange rate,afterwards was the revaluation tendency, until now. Then relative introduction our countryimport-export trade condition change. With the constant expansion of foreign trade, thesignificant increase in our dependence on foreign trade, import and export commoditystructure has also changed. Industrial products, labor-intensive products to become the mainexport products, and the import of manufactured goods and capital-intensive products, but theexport product still by the low added value, the low profit primarily, the structure still had tooptimize the promotion..The fourth section analyzes the RMB exchange rate changes on China’s import andexport trade. First divided two stages to analyze the exchange rate change to our country traderevenue and expenditure influence. During the two-tier exchange rate system, the RMBdepreciation due to various factors, and improve our country’s economy has not received theresults; the fixed exchange rate system, as the role of internal and external factors of theappreciation of the Yuan but still trade surpluses in China; floating exchange rate period, theRMB exchange rate appreciation, but exports are still high-speed growth. Next, from thecommodity structure of foreign trade, foreign trade structure and regional structure analysis ofthe impact of exchange rate movements on the foreign trade structure since the reform andopening up, concludes that RMB appreciation in favour of China’s foreign trade commoditystructure optimization and upgrading, but we need to take action, make it slow and steady appreciation.The fifth part of suggestion part, this chapter proposed first our country foreign tradeexistence question, and then summarize the recommendations, and3points from maintainingstability of the RMB exchange rate to optimize the structure of trade, and finally reminded thegovernment and businesses to exchange rate risk awareness, guarantee the stability of RMBappreciation of the slow, guarantee the stable and healthy economic development.