| In July 21st 2005 , our government began to carry out Managed Floating Exchange Rate which is based on the markets' supply and demand , and adjusted according to a basket of currencies . RMB was floating upward 2% . The complete reform of RMB exchange rate must affect our foreign trade deeply in the future . So the paper observes the influence to our export and import from this certain small adjusting of exchange , and analyzes the negative influence and advantage fuction which the exchange reform takes to our foreign trade industry and enterprises . Then it does researches and works out some devices to deal with the exchange reform .The paper is devided into three parts :The first part mainly says the circumstances of RMB exchange rate reform . Beginning with the theory , it describes exchange , the purchasing power parity , and the relation between the exchange and the foreign trade .The exchange is the most important variable for a country in its international economic activity . Casel Theory of Purchasing Power Parity tells us exchange rate's flosting relates close to an economy's internal price . To the opposition, the exchange rate's adjusting has a deep influence to its balance of the foreign trade and internal economic activities . The Theory of Elasticity , the Theory of Long Delay , the Absorbing Analysis Method , the Currency Analysis Method , the Theory of Inperfect Exchange Transmitting and so on are all classical theories researching on that the exchange rate retroats an economy's development and foreign trade . These theories observe the fuction of exchange rate in different points of view, and have got the final conclusion : The exchange rate movements may affect the trading amount and structure. In the common saying , exchange rate devaluate will be favorate for advancing its own competition of the goods . But if it can improve the trading revenue and expenditure must be restricted by complex factors .Before the exchange rate reform, our government has to be face to the pressure of revaluation from overseas . At the same time , the internaleconomic situation is crying for a new exchange rate forming system can solve kinds of economic problems . So RMB exchange rate reform may do important meaning to our economic development . InJuly 21st 2005 , our government began to carry out Managed Floating Exchange Rate which is baeed on the markets' suppiy and demand ,and adjusted according to a basket of currencies . As a referral, the selection of the basket currencies and the decision of the proportios is mainly thought of the big business partner countries or areas and their currency in the balance of payments current account of China. Nowadays USA , Euro-area , Japan , Korea are the most business partners of China . And correspondingly US dollar, Euro, Japanese yen, WON also seem to be the main basket currencies . The focal point of this exchange rate adjusting is not whether the exchange rate goes upward or downward , but the reform of the forming systerm . In a long-term , it is just the beginning of the exchange rate . Our exchange system should develop to the more flexible floating exchange rate in order to realize RMB can exchange freely . From then on , the new system is going well. The regular movement express the rule that the market's supply and demand is the basis and the exchange rate's adjusting is according to the basket currencies . The market respond to RMB exchange rate reform is positive . The anticipation is steady .The second part makes a key discussion on the influences from the adjustment of RMB exchange rate to our import and export .Before the exchange rate reform , our country had a strongtendency of the foreign trading . The way and the structure of trading have a big change . The total quantity of trading grew swiftly and violently . But there are also many problems behind the encouraging numbers . The oversized balance of payment surplus , the low level of export products , the obsolete foreign trading strategy , the foreign trading pressure from the lack of internal demand and so on. So many problems have been puzzling our economy's development continually , healthily and fast . Taking into long-term consideration , carrying on the RMB exchange rate reform this time could be helpful to the solutions of the economic problems . But simultaneously the revaluation of RMB and the undulation rule's change will also have some negative influences to the foreign trade industry and the enterprises . The paper summarizes the shortcomings and the advantages from the exchange rate adjustment and affects of the reform on our foreign trade industry and enterprises through the textile , the electrical appliances , the automobile , the steel , the mechanical and electrical products and so on and the main foreign trade product import and export situation observation and the analysis after the exchange rate reform . The malpractice aspect is obvious , the revaluation of RMB affects our country foreign trade exportation directly ; It weakens the Chinese commodity in international market competitive ability ; It enlarges foreign trade enterprises' exchange risks ; The entire national economy is facing the threat of latent deflation ; It also weakens the ability of attracting foreign capital. But as the exchange rate adjusts discreetly in the short-term , it does not have a big influence on the imports and exports total quantity . The lose of competitive advantage exportation price forces the domestic enterprise to make a way inevitably depending on technology to gain the new competitive advantage . It is more likely to bring our country's export into a sustainable developing way on objective . It promotes transformation of the the trading structure and the direction of trading growing . It makes import and export enterprise superior win and the inferior wash out, and it makes the different foreign trade profession and the enterprise appear the differentiation . At the same time , through the exchange rate reform to absorb overseas resources anddigest the surplus foreign exchange reserve . It promots "two kind ofresources" to flow reasonably and makes the national economy move into the positive cycle. In the process , the foreign trade import andexport department is both the operating platform and the one that benefits from it. Moreover , the revaluation makes our balance of payment surplus rise slowly down . It has a good effect on reducing trading friction with the main trade partner . It also has a good effect on releasing anti-dumping lawsuit and other trading conflicting puzzles .In the face of all kinds of negative influnence bring from the present exchange rate reform , we must take a series of measures to deal with it . This paper makes some strategies and suggestions to deal with the exchange rate reform for the govenment and enterprises in thethird part . First , to inspect the case of Japan and Germany dealing with their exchange's going upward . We should profit from their respective outstanding , takes some policies and measures from both the government macroeconomic regulation and the enterprise microscopic subject . 1. Strength the guard of the enterprise exchange risk : (1) Choose the transaction currency reasonably according to the trend of the exchange ; (2) Open up the regiondistribution of the import and export business , to make multiplex operation ; (3) Use all kinds of trading way of the foreign exchange and the finance derivative tools. 2. The government should use the foreign trade strategy reform to deal with the exchange rate reform ; 3. Expand the internal demand positively , and reduce the dependence of exportation . |
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