The Theoretical Research And Practice Analysis To The Current Exchange Rate Regime Of China

The choice of exchange rate regime has become a global issue. As a big economic country, the choice of China affects all the world trade. The choice of appropriate exchange rate regime can promote not only the country's economic development, but also the economic development of the world. At July 21, 2005, China issued a statement on the reform of RMB exchange rate system, with implementation of the reference basket of currencies in a managed floating exchange rate regime and a one-time revaluation of 2%.In this paper, the international exchange rate system in the historical process and theoretical study was carried out in order, analysis of exchange rate regime choice including traditional views theory and the latest developments, combined with the actual situation of developing countries. The reform of RMB exchange rate system is suitable for immediate international and domestic economic environment, from the history of the RMB exchange rate system reform process and the current situation of the economy, the timing is appropriate, through the research of New Zealand and Poland's exchange rate reform experience, the reform of the RMB exchange rate system is proposed by revelation. RMB exchange rate system reform has carry out for four years, the basket of currencies exchange rate regime really make a more flexible RMB exchange rate formation. By the Frankel and Wei model analysis, although the U.S. dollar accounted for significant weight, but the other currencies obtained in the basket of currencies, have also played a certain role. The reform of RMB exchange rate system is successful, the exchange rate has been stabilized and more flexible, easing the pressure on RMB appreciation and promoting China's economic development. However, the current RMB exchange rate system still has many deficiencies, the article discusses the future of the exchange rate regime choice and the reform of the relevant policy and advice.