China has maintained RMB exchange rate nearly unchanged since 1998. However, with the relaxation of capital control, a crawling peg, a more flexible RMB exchange rate regime, is inevitable. Based on improving the curr...China has maintained RMB exchange rate nearly unchanged since 1998. However, with the relaxation of capital control, a crawling peg, a more flexible RMB exchange rate regime, is inevitable. Based on improving the current formation mechanism of RMB exchange rate, Chinese government could widen the floating band around the central parity; in the long run, switching the peg from USD alone to a basket of currencies may be a better choice.展开更多
The Chinese currency, the yuan, which was pegged to the value of US dollar in the past, will now be a managed currency. Its value will be set in relation to a basket of currencies. China is taking the first big step t...The Chinese currency, the yuan, which was pegged to the value of US dollar in the past, will now be a managed currency. Its value will be set in relation to a basket of currencies. China is taking the first big step toward a free-floating currency. This analysis explores the impacts on Chinese banking, Chinese companies and international monetary market.展开更多
Since 2003, there has been a strong RMB appreciation expectation in the market. RMB exchange rate becomes the world focus again. This paper insists that the depreciation pressure of US dollar is the main reason that c...Since 2003, there has been a strong RMB appreciation expectation in the market. RMB exchange rate becomes the world focus again. This paper insists that the depreciation pressure of US dollar is the main reason that causes RMB appreciation expectation; the ＂double price action＂ of the Chinese tradable goods and non-tradable goods is the special reason that leads to RMB appreciation expectation; furthermore, the asymmetric foreign exchange rate management system in China strengthens RMB appreciation expectation.展开更多
The Chinese exchange rate has been the focus of discussion for many months, with bothinternal and external considerations seemingly pointing to the desirability of a currencyrevaluation. This paper draws from the less...The Chinese exchange rate has been the focus of discussion for many months, with bothinternal and external considerations seemingly pointing to the desirability of a currencyrevaluation. This paper draws from the lessons of international experience with exchange-rate regimes in the period since World War Two. It lays out the conditions necessary tovalidate a fixed exchange rate and some intermediate regimes that might work when a fixedrate is inappropriate. It then discusses what the analysis implies for contemporary China.展开更多
文摘China has maintained RMB exchange rate nearly unchanged since 1998. However, with the relaxation of capital control, a crawling peg, a more flexible RMB exchange rate regime, is inevitable. Based on improving the current formation mechanism of RMB exchange rate, Chinese government could widen the floating band around the central parity; in the long run, switching the peg from USD alone to a basket of currencies may be a better choice.
文摘The Chinese currency, the yuan, which was pegged to the value of US dollar in the past, will now be a managed currency. Its value will be set in relation to a basket of currencies. China is taking the first big step toward a free-floating currency. This analysis explores the impacts on Chinese banking, Chinese companies and international monetary market.
文摘Since 2003, there has been a strong RMB appreciation expectation in the market. RMB exchange rate becomes the world focus again. This paper insists that the depreciation pressure of US dollar is the main reason that causes RMB appreciation expectation; the ＂double price action＂ of the Chinese tradable goods and non-tradable goods is the special reason that leads to RMB appreciation expectation; furthermore, the asymmetric foreign exchange rate management system in China strengthens RMB appreciation expectation.
文摘The Chinese exchange rate has been the focus of discussion for many months, with bothinternal and external considerations seemingly pointing to the desirability of a currencyrevaluation. This paper draws from the lessons of international experience with exchange-rate regimes in the period since World War Two. It lays out the conditions necessary tovalidate a fixed exchange rate and some intermediate regimes that might work when a fixedrate is inappropriate. It then discusses what the analysis implies for contemporary China.
