Study On The Influence Of RMB Exchange Rate Policy On Import & Export Trade Of China

The continuance and stable development of trade is an important guarantee to achieve outer balance and economical increase. Exchange rate is the soul of international finance. It plays a more and more important role in the inside and outside equilibration and reliable development of national economy, even in the movement of worldwide economy. As a significant variety of economical lever, exchange rate is one of the important aspects, which influences a country or a region's Import and Export development. Therefore, the effect of changing exchange rate policy on trade development has always been widely researched as a major subject in the international economics. Meanwhile, it has attracted an intensive attention from the countries all over the world. Exchange rate policy means systemic arrangement and idiographic measure made by government in a period of time, aim at macroscopical economy, by the way of inflicting the change of exchange rate. As one part of currency policy, it is one of the tokens in the national economic dominions. At the same time, it serves for the profits of country and people. In opening economy and finance globalization background, exchange rate policy, has become a indispensability macro supervision and adjustment tool. In achieving the goal ----inside and outside balance of national economy; how to choose and actualize tool and exchange rate policy, to some extent, will influence a country's economic development and safety. In the end of 1970's, China began to think highly of exchange rate policy, it implemented economic structure development and opened its national trade door to external countries. This situation reflected in two aspects: 1. Adapting the needs of marketing economic structure's development, consolidating the regulation effect on the Imports and Exports trade development due to the fluctuation of exchange rate step by step; 2. Adapting the needs of balance both in trade and international income and expenses, by means of stable exchange rate depreciation of RMB, promoting the increase of export trade. In the process of reforming and opening, the relationship between exchange rate of RMB and China's foreign trade has become more and more close. In additional, the effect of changing exchange rate policy on trade regulation of Imports and Exports has been consolidated. Practically, in the point of view that the changing of exchange rate influences the imports and exports trade development, the process of reforming and opening displays as a continuously progress, in which exchange rate changing regulates the development deepening and developing of trade from intensity to scope. With the implement of all kinds of reform measures, especially the foundation of RMB's float rate with management in 1994, exchange rate became more and more important in trade development. And the effect of exchange rate changing on trade development was much more obvious. It made people pay more attention to the regulation effect on the Imports and Exports trade. In recent years, American has led some other developed countries into requesting fiercely that RMB should carry out appreciation at a high rate. However, the rise in price of domestic commodity has formed an obvious pressure of RMB's depreciation. So, it becomes a significant theory and practical problem that will be confronted with in a long period of time. Accordingly, this paper talks deeply about Imports and Exports regulation effect due to exchange rate changing, meanwhile, provides relevant strategies and methods. This paper is constituted by three main parts except the exordium. The first part introduces some correlated theories about exchange rate policy as well as the regulation of Imports and exports; The second part adapts analysis method of calculate-economics and statistics, selects given practical data and sample, carries out standard and demonstrated research, aims directly at how RMB's exchange rate policy influences Imports and Exports trade, then reaches relevant conclusions; The third part, based on the demonstrated results, gives some suggestions on how to consummate RMB's exchange rate policy and promote the development of external trade, with the help of China's expanded throwing house open to the foreign countries.