The Study Of The Forming Mechanism Of Pressure On RMB's Appreciation Upon The Perspective Of Theory

Since the latter half of 2002, international voice for RMB's appreciation has become louder, and the equilibrium of exchange rate has become the focus of the academia. In July 2005, People's Bank of China announced the reform of the system of RMB exchange rate, from closing up dollars to referring to a total of currencies. Thus the exchange rate of RMB started increasing slowly with the maximum of one dollar to 7.73 RMB up to the end of March.This study, focused on the creation of the appreciation pressure, launched a theoretical research with the help of theories on exchange rate, economy growth and balance of payments. In the framework of each theory, with application of the Balassa-Samuelson effects, balanced practical exchange rate and the theory of balance of the payments, the study seeks the mechanism of economic impact on appreciation of RMB. On this basis, the comprehensive theoretical framework of pressures on RMB's appreciation is constructed.The huge pressure from the international society led by the USA and Japan as the external force, the long term imbalance of supply and demand of exchange rate resulted from the inconsequence of China's exchange rate mechanism as the institutional factor, the bi-surplus of BOP is the major cause of impact on the appreciation. However, compared with the productivity, national income, price and difference on interest rate, China's continuous economic growth in the past 20 years is the ultimate reason of RMB's appreciation. RMB's appreciationBased on the research of the forming mechanism of pressure on RMB's appreciation, the thesis recommends corresponding policies, including: further lowering the comprehensive export drawback to weaken the export stress; avoiding frication in the Sino-American trade to lower the pressure of appreciation; control the scale of foreign exchange stock; perfecting the exchange and the wardship of accounts and establishing the overall inspection on the flow of foreign exchange; advancing the reform of exchange rate system, etc.