Financial Progressive Opening Up Of China's Exchange Rate Regime Choice

Asian financial crisis has brought severe impact on the south-eastern countries which take on fixed exchange rate system, and has a serious impact to our country which takes on fixed exchange rate system. How to escape from the impact of these factors such as international capital flow and spectacular fund, is becoming a challenge to our fixed exchange rate system, especially after entering into the members of WTO to our country we must face with the global economy.This article follows this ideology, firstly it analyses the development of exchange rate system, then it further analyses the merits and demerits of floating and fixed exchange rate system. In consequence we conclude thedecisive factors of one country s exchange rate system. On the basis of our country s reality-gradually open to the outside, whether we can take on fixed exchange rate system or floating exchange rate system. From the development of our country s exchange rate system, it is shown that the exchange rate system of our country is marched with the specifical period, so in such a newcircumstance ,we have to make a choice to take consideration of that, only if can we match the global economy.