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
Like most developing countries, China has been adopting a multiple exchange rate regime in its attempt to maintain control and order while liberalizing transactions in the sphere of trade, non-trade and crossborder fu...Like most developing countries, China has been adopting a multiple exchange rate regime in its attempt to maintain control and order while liberalizing transactions in the sphere of trade, non-trade and crossborder fund flows. From a very rigid, highly centralized regime in 1979, China has by now advanced to a relatively flexible system under which the official rate, the swap rate, and the ＂free＂ market rate coexist. The tight control of international transfer of funds has also been progressively relaxed, as different parties gain increasing freedom to acquire foreign exchange. The Chinese economy has been reasonably stable during the Asian financial crisis. Although China maintains the exchange rate stability, in near future a real appreciation of the RMB must be necessary element in global adjustment. More flexible exchange rate will give more advantages for Chinese economy.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Like most developing countries, China has been adopting a multiple exchange rate regime in its attempt to maintain control and order while liberalizing transactions in the sphere of trade, non-trade and crossborder fund flows. From a very rigid, highly centralized regime in 1979, China has by now advanced to a relatively flexible system under which the official rate, the swap rate, and the ＂free＂ market rate coexist. The tight control of international transfer of funds has also been progressively relaxed, as different parties gain increasing freedom to acquire foreign exchange. The Chinese economy has been reasonably stable during the Asian financial crisis. Although China maintains the exchange rate stability, in near future a real appreciation of the RMB must be necessary element in global adjustment. More flexible exchange rate will give more advantages for Chinese economy.
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.
