Influence Of Appreciation Of RMB On Chinese Foreign Trade And Suggestions

Since July21,2005RMB exchange rate formation mechanism reform the exchange rate continued on the slow rate of appreciation. The data that comes from Chinese foreign currency trading center shows that the middle price of RMB to the US dollar breaks through6.3429in July25,2012. While the outside pressure on RMB appreciation continues to grow, the market expects that the RMB exchange rate will continue to rise, which will make Chinese foreign trade have a certain impact. This paper for the small amplitude slow appreciation of the RMB exchange rate, exchange rate movements impact on foreign trade theory elaboration and evaluation on the basis of political factors described in recent years our appreciation of the renminbi and economic factors, and comparative review of the RMB the exchange rate formation mechanism reform process, as well as the impact of RMB appreciation on the foreign trade of China’s economic walks of life.The paper starts to analyze that Chinese RMB exchange rate will remain stable to slowly rising with the appreciation of the RMB exchange rate theory analysis. How the appreciation of the RMB exchange rate will influence China’s foreign trade commodity structure. This paper will further validates the conclusions and macro and micro suggestions on China’s exchange rate reform and foreign trade structure.