An Analysis Of Advantage And Disadvantage Of RMB’s Appreciation And Risk Prevention Under Economic Crisis

The issue of RMB exchange rate is an important problem in finance, for China the export oriented economy, the exchange rate research not only has academic significance, but also for national policy, even has the guiding significance of export-oriented enterprises coping strategies.Since1994Chinese government reform, the appreciation of RMB trend, from8.7:1to the current6.10:1, the RMB has appreciated by more than40%. The appreciation of RMB and why, what are the factors leading to appreciate, appreciate what the pros and cons, from how national level and enterprise level response. These are our concern.In the collection of the numerous data, this paper uses the method of comparative analysis and quantitative research, analyzes the influence factors of RMB exchange rate change, comparative analysis of the different China and Europe and Japan, BRIC countries, summarizes the influencing factors of the appreciation of the RMB, including the quantity of money, GDP growth, trade surplus and capital surplus foreign exchange reserves, interest rates, and other factors such as monetary policy, explains the internal reason since the1994reform of RMB appreciation. Analysis of different variables of recent domestic and international on the basis of this, analysis of the impact of the appreciation of the RMB for the development of national economy, from the fair perspective, points out the advantages and disadvantages of the appreciation of the RMB, and various performance. The appreciation of the RMB is nearly twenty years shows Chinese economic development, also brought many beneficial changes, for example, to attract foreign investment, stabilize domestic price level, to expand the influence of Chinese, laid the foundation for the internationalization of RMB stable. One can also contain some unfavorable factors, such as extrusion, export-oriented enterprises profits, limiting the effectiveness of the central bank’s monetary policy, and so on. At present, China facing a critical moment of economic transition, the timely adjustment of monetary policy will bring a further development for the country and the enterprise. In this regard, we propose several options of RMB exchange rate policy, analyses their advantages and disadvantages, and provide the basis for the state and enterprise decision. Several paths may change in future RMB exchange rate:a modest appreciation, small devaluation, devaluation, change the currency issue system, etc.. Need to choose according to the actual situation of the home and abroad.