The Study Of Further Reform Of RMB Exchange Rate Regime

The degree and extent of China's opening economy is much deeper and wider,the influence to the world's economy is more powerful.Working as the bridge connecting internal and international economy,RMB exchange rate is drawing more attention and the discussion.As the world's economy is steadily recovering with bright prospects,we have tided over the most difficult phase of the international financial crisis,but there are new problems attracting our attention in post-financial-crisis era.European Monetary Union crisis is deepening,the financial asset bubble risk in Asia is aggravating,and the latent financial risk is still about high level.Under this background,the relative question of RMB exchange rate has aroused more extensive concern in the international community.On many occasions,Chinese governments have emphasized that we should deepen the reform of RMB exchange rate regime and improve the mechanism.On Nov.11,2011,the People's Bank of China announced in the monetary policy executing report that based on go-aheadism,controllability and gradual-advancing,according to international capital flows and main currencies' exchange rate trends,we would improve RMB exchange rate forming mechanism.On Jun.19,2010,the People's Bank of China announced "propel the reform of RMB exchange rate regime further,and enhance RMB exchange rate flexibility".In the government work report of year 2010,Premier Wen Jiabao re-emphasized that"Carry on improving RMB exchange rate forming mechanism,maintain basic stability of RMB exchange rate on the reasonable and balanced level." In March 2012,Chinese government organs made successive statements that Chinese government would accelerate the pace of RMB exchange rate regime reform gradually.This paper will have a research on the topic in four chapters.The beginning part is an introduction.The first chapter summarizes the evolution of RMB exchange rate regime.The second chapter analyzes the trend of RMB exchange rate in recent years.The third chapter analyzes the limitation of present system and the feasibility of further reform.The fourth chapter puts forward proposals about further-propelling reform of RMB exchange rate regime basing on former analysis.The summary is we need a clear and overall framework to guide the further reform.We should enhance the exchange rate flexibility in a stable way,on the premise of internal economy well-working.Enhancing RMB Exchange rate flexibility and propelling the reform are good for independency of monetary policy and initiative of financial adjustment,good for reinforcing the international competitiveness and the capability to withstand risks.Good for sustainable development strategy and good for optimizing both international and national resources.