The Role Of China In The Coordination Mechanism Of Exchange Rate In East Asia

Since the Asian financial crisis in 1997, the East Asia economies are beginning to realize the importance of regional monetary and financial cooperation. From the initial signing of bilateral currency swap to multilateral swaps, the establishment of the East Asian foreign exchange reserve, and the proposition of Asian Monetary Fund, the improvement of the East Asian bond market, and a series of measures to promote the monetary and financial cooperation in East Asia in a proposed, but for monetary and financial cooperation in higher level stage of East Asia exchange rate coordination mechanism has always failed to realize, which deserves a very important reason.In this paper, the progress of the East Asian exchange rate coordination mechanism as the breakthrough point, explore the reason of the slow progress, mainly due to t he lack of leading countries and regional currency, while China has the potential to become leading country. Based on the analysis of the role of China in East Asian exchange rate coordination mechanism, firstly analyzes whether China had the drive and ability to participate in the East Asian exchange rate coordination mechanism, and the conclusion is China has both the power, at the same time also has the ability to participate. This article from the perspective of trade and currency for the role of China in East Asian exchange rate coordination mechanism, trade point of view from two aspects: the trade scale and asymmetric competition pressure, argue that China has become the East Asia regional market suppliers. Currency Angle is obtained by empirical analysis conclusion, there are six East Asian currencies anchor Dollar in July 2005- July 2008, there are four East Asian monetary anchor Euro, and only two the East Asian currencies anchor RMB. After the financial crisis in 2008, in September 2010- March 2014, East Asian currencies anchor Dollar and Euro significantly reduce, by contrast is anchoring the RMB currency increased to five, and it illustrates the RMB gradually play an important role in East Asia, become an important anchor currency entities including domain.