Analysis China's Exchange Rate Decision-Making System And Its Legal Perfection

RMB exchange rate has always been a hot topic of concern,the stability of the RMB exchange rate is not only related to China's economic development,but also related to the stability of the international economic environment.However,in r2015 the RMB exchange rate had changed the trend of steady appreciation since the second reform of exchange rate,has a significant depreciation.The People's Bank of China began to use a series of measures and means to carry out large-scale intervention on the foreign exchange market.On the one hand,facing the collapse of RMB exchange rate against the US dollar,The People's Bank of China used a large amount of foreign exchange reserves to maintain the exchange rate and issued a series of statements affecting the public expectations,on the other hand,concerning the increasingly weak economic situation,it had to cut interest rates frequently.However,these interventions taken by the monetary authorities were not significant and have brought a series of problems.These interventions not only severely reduced China's foreign exchange reserves but also hardly damaged the credibility of the monetary authorities.At present,these series of interventions taken by the People's Bank of China to deal with the situation of the collapse of the exchange rate,the frequent mistakes of the monetary authorities in facing the current economic situation have actually exposed a series of problems in China's current exchange rate policy decision-making system.The core issue is that China's monetary policy committee's legal status is too low,the independence of the Central Bank is weak;the procedure of decision-making system is lack of democracy,scientific and transparent.In 1913 the United States established a highly authoritative Central bank system through the "Federal Reserve Bank Act”,it has a certain representation in the Western countries.Therefore,based on the idea of " Learning the strengths of others in order to better improve yourself",this paper uses the comparative analysis of thinking and focuses on the comparison of four aspectsthe exchange rate policy decision-making organization,the independence of decision-making,the decision-making process,the transparency of decision-makingwith the exchange rate policy decision mechanism of American and trying to find out the problems and put forward some feasible legal measures and some useful reference for better solution to the current exchange rate problems in China.