The Legal Research Of RMB Exchange Rate Manipulation

Since the subprime crisis broke out in America, the sluggish growth of domestic economy, obstinately high unemployment and a rising wave of trade protectionism turmoils the US-led western countries, which make RMB exchange rate become an powerful excuse to attack China. Therefore, it can be a doubtless and meaningful subject by close attention to the regulations about International Monetary Law on manipulating exchange rate and to show a reasonable response from international law at the background of collecting power to denounce and exert upward pressure on RMB. On basis of all this, this thesis takes a serious research on Agreement of IMF and relevant international treaties to utter condemnation and refutation of the trade protection behavior of the US-led western countries which in the name of RMB exchange rate manipulation. And also the exchange rate regime which are in conformity with the obligation under Agreement of IMF are setting forth in thesis to testify no any manipulation of RMB exchange rate.The thesis consists of five parts. The opening chapter introducing the conception, cause, variety and international law regime of exchange rate is to do foreshadowing for following legitimacy statement on exchange rate and chapter two is to straighten out IMF and WTO’s attitude towards to jurisdiction of each country’s exchange rate regime. The exactitude definition of jurisdiction is a prerequisite for exploring RMB exchange rate manipulation issue. Then a careful consider will be taken in chapter three to analyze the cause and purpose of America accusing China of manipulating exchange rate. And a quesiton worthy of consideration is that the accusation once established, some adversely effects such as China marco-economic situation, obtain employment and social stability appear in the wake of RMB exchange rate appreciation, which call on us to learn lesson from analyzing Japan’s misplay when it cope with the "Plaza Accord" and to serve as a reminder for China’s RMB appreciation. With gaining insights into the Section four, eight and fourteen of Agreement of IMF and other IMF documents, chapter four, is the critical part, which amplifies the fulfillment of obligation of China under Agreement of IMF without manipulating RMB exchange rate. As for chapter five, it’s a shining and innovative point which mainly indicates present market-oriented problem in current exchange rate regime. Last but not least, some solutions and suggestions are specifically presented in this thesis for resolving the exsiting problem of China’s RMB exchange rate regime.