Study On Choice Of RMB Exchange Rate Regime

Human activities of international economic exchanges, and always look forward tohave a reasonable exchange rate system in order to stabilize the prices of goods andservices. Recurrent exchange rate fluctuations, and even substantial changes in thedamaging effects on each country’s economy and international trade. Especially inrecent years to improve China’s comprehensive national strength, the yuan appreciationas well as the international financial crisis led the U.S. dollar strength weakened,making the RMB exchange rate issue has become the focus of public attention. Fullintegration into the world economy in the Chinese economy in the backdrop of thefinancial crisis, the RMB exchange rate is increasingly attracting people’s attention.Therefore, a reasonable exchange rate arrangements is a protective barrier of thenational economic interests, internal and conducive to achieving price stability andeconomic growth, foreign conducive to achieving the balance of international payments,and to withstand external shocks.Firstly, the evolution of the international monetary system from the start of achange in the exchange rate regime, along the course of the development of theevolution of the international monetary system, the gold standard during the exchangerate regime, the exchange rate regime between the two world wars, the Bretton Woodssystemexchange rate system since under the exchange rate regime of the Jamaicaagreement, as well as floating and fixed exchange rate regime dispute×reveals theprocess of changing exchange rate system. And analysis from an economic perspective,based on the Mundell-Fleming Model,"trilemma" choice of exchange rate regime, theanalysis also analyzed the economic factors that determine the exchange rate regimechoice.Second on the evolution of the RMB exchange rate regime, and analyzes thecurrent peg to the currency basket exchange rate regime choice progressive "Exit" modein line with our realities. Finally, the RMB exchange rate system were discussed. Proposed strictly managedfloat exchange rate system can only serve as milestones of the reform of RMB exchangerate regime, easing the management of floating exchange rate system should be theultimate goal of the RMB exchange rate system reform and policy recommendationsfor improving the RMB exchange rate system building.