The Study Of Rmb Nominal Rate Movements’ Impact On Chinese Export Trade

As a price of other country’ s national currency which is represented by some country’ s national currency,exchange rate is one of the most important link between domestic and international economy,and a leverage of the international financial.Exchange rate is playing an indispensable role in realizing one country’ s internal and external equilibrium and stability.It also play an important part in the operation of the world economy orderly.After the exchange rate regime reformation of combining dual exchange rate system,implementing a new system which is based on market supply and demand,single,managed floating,began in January 1st and another new system which is implemented as a regulated,managed floating exchange rate system based on market supply and demand and in reference to a package of currencies,began in 2005,RMB exchange rate is more floating compared with previous period.Foreign trade is an important part of national economy of our country,and as a huge exporter,the improvement of the export trade has very vital significance to our economy.In theory,one country’ s currency exchange rate has great influence on its export trade.One country exchange rate’ s increasingly floating will lead to its increasingly changing export,which affects the country’ s economy greatly.This paper is based on the relevant data from 1995 to 2015,doing qualitative analysis by tables and data,firstly.Then this paper divides the total amount into two categories and ten classes by SITC classification,and uses those data to do empirical analysis to study and analyzed how RMB nominal exchange rate’ s changing impacts on China’s whole export trade and each kind of products,in the case of RMB nominal exchange rate getting more floating.The paper comes to the conclusion that because of the exchange rate’ s Incomplete transitivity,inflation and the non-tariff barriers,first of all,in general,the movement of RMB nominal exchange rate has significant effect on our country trade export.At the same time,the income level of trade partners and our gross domestic product in our country also has a significant effect on exports.Among them,the RMB nominal exchange rate and trade partner’s income play the similar roles in export.Second,the movement of RMB nominal exchange rate has quite different impacts on different kinds of goods.The impact on primary products is not significant as the impact on manufactured goods.And there are difference between those two categories goods.This is less studied by previous papers,which is one of the main innovation points in this paper.This paper is divided into five parts.The first part is introduction,including the background,significance,domestic and abroad status of the study.The second part introduces some related concepts of exchange rate and export trade,and some theories about how exchange rate movement affects export trade.The third part reviews and summaries the change of RMB nominal exchange rates and its institution and our export trade.The fourth part studies how the RMB nominal exchange rate movement affects the total amount and classified products export trade with qualitative and quantitative analysis.The fifth part is some corresponding suggestions according to the result of the study.The sixth part is prospect.