Effects Of RMB Exchange Rates Fluctuations On Binzhou City

On July21st,2005, exchange rate of USD against RMB has dropped from8.27to8.11with a decrease of2.1%. Our country executes Floating Exchange Rate Regime:the floating is market-based, regulated and referred to currency basket.On March17th,2014, the floating range of RMB exchange rate against USD rose from1%to2%on inter-bank spot foreign exchange market, meanwhile, the designated foreign exchange Bank was permitted to provide clients with USD on a wider floating price. The difference between the highest and lowest dollar spot selling rate over the middle one was supposed to be less than3%, which was only2%before. On April30th, the RMB spot market bottomed to6.2669, a new low within nearly one year and a half, ended at6.2591drawing close to such an important threshold as6.26. This depreciation has topped the table from both amplitude and duration since exchange rate regime reform on2005with complicated causes. Its short-term goal aimed at curbing inflow of arbitrage funds, while long-term goal at giving up stability appreciation strategy of RMB exchange rate, realizing independence by increasing bidirectional fluctuations of RMB exchange rate. Based on this, the central bank in the future will gradually exit the normal type of foreign exchange intervention, seek to market-based and regulated floating exchange rate system. The bidirectional fluctuation of RMB exchange rate trend will be more obvious and become the norm. Accidental devaluation of RMB in first quarter of this year broke the unilateral appreciation expectation, meanwhile, bidirectional fluctuation of RMB exchange rate is aggravating. For import and export enterprises, this means more complicated trade settlement and exchange rate risk in the future, which will become an important factor affecting enterprises’ operation.Taking Binzhou as an object, in this thesis I select import and export data, RMB exchange rate data and local GDP of Binzhou from1994to2013, analyse influence of RMB exchange rate on international trade, and put forward personal policy suggestions.Meanwhile, because of engaging in foreign exchange business in routine work, I hope that this research and analysis may be helpful to my work by recognizing the orientation of exchange rate development and advancing reasonable proposals.