Effects Of RMB Exchange Rates Fluctuations On Boxing County In Shandong Province

China began to step further into the international market at a faster pace after joining the WTO in the year of2001. So both the frequency and scale of international trade are increasing larger and larger. In2005, China implemented the RMB exchange rate reform, leaving the exchange rates fluctuate more and more frequent. Under this circumstance, it becomes especially important to learn how to cope with exchange rates exposures and then keep long-healthy development for those regions and companies who involve in international trade. Now we select data from2000to2012of exports and imports of Boxing County in Shandong Province to study its whole and structural states of foreign trade using statistical analysis method. After that we will employ econometric analysis to explore the relationship between the level and volatility of the RMB exchange rate and foreign trade of Boxing county. With the firm-level data from2007to2012, we try to investigate the exchange risk awareness and foreign exchange exposures of enterprises in Boxing county. Finally, the conclusion is as followings:the increase of effective exchange rate level will enlarge the trade deficit of Boxing county; when REER appreciated by1%, trade surplus of Boxing county decreased by7.3%; in addition, firm’s foreign exchange risk awareness is not strong, for the enterprises did not reduce exports or increase imports when RMB. At last, we try to put forward some suggestions about it.