RMB Foreign Exchange Derivatives On China's Currency Effect Of Policy

July 21,2005,the people's Bank of China announced the opening of a new round of reform of the RMB exchange rate.With the opening of the exchange rate reform,the RMB exchange rate volatility has become increasingly frequent,Market pricing mechanism gradually forming.As the basis of economic resources and the price of financial assets,the RMB exchange rate will have an important impact on China's economy.RMB exchange rate has become an important reference factor in domestic and foreign financial markets.In order to improve the exchange rate formation mechanism,the people's Bank of China has gradually established the domestic RMB foreign exchange derivatives market.At the end of 2005,the people's Bank of China launched the RMB foreign exchange derivatives.RMB foreign exchange derivatives market was established,not only to improve the efficiency of foreign exchange resources have a positive impact,but also increased the financial macro-control channels.RMB foreign exchange derivatives,with its strong innovation and hedging functions,meets the needs of the investment needs of traders.RMB foreign exchange derivatives to improve the efficiency of financial markets.RMB foreign exchange derivatives to avoid or delay the adverse impact of monetary policy.Final RMB foreign exchange derivatives to change the consumption and investment behavior of investors.By the end of 2015,the size of theRMB foreign exchange derivatives trading reached US $ 9.5 trillion,over the same period China's GDP is $ 10.25 trillion.With the variety of rich and the growth of the size of the transaction,the market trading mechanism is to improve.Through the transmission channels of monetary policy,the RMB foreign exchange derivatives affect the real economy.Under this background,the paper studies the influence of RMB exchange derivatives on monetary policy,and analyzes the development status of RMB exchange derivatives market.This paper studies the impact of foreign exchange derivatives on the monetary policy transmission channel and the ultimate goal.Empirical test shows that RMB foreign exchange derivatives can improve the liquidity of financial assets,so that the transmission channels of monetary policy more smoothly and quickly,while investors through signed currency derivatives contracts to avoid financial risk,delaying the adverse impacts of monetary policy.Second,the RMB foreign exchange derivatives to improve the ability of foreign trade enterprises to avoid risks,increase the uncertainty of the balance of payments.Finally,the RMB exchange derivatives to expand the investor's trading channels,improve the asset price discovery function,and ultimately affect the real economy.To sum up the conclusion,the paper puts forward that RMB exchange derivatives have an impact on China's monetary policy channels,and ultimately affect the three indicators of monetary policy implementation effect.Based on the theoretical analysis and empirical test results,this paper puts forward some suggestions on the development of RMB foreign exchange derivatives market and other issues that need to be paid attention to.Recommendations: China's timely introduction of RMB foreign exchange futures trading,and the proposal will be included in the RMB foreign exchange derivatives market to the people's Bank of China to develop monetary policy considerations.