China's exchange rate regime to export more advantages than disadvantages RMB appreciation is not a

People's Bank of China (hereinafter "CBC") in June press spokesman, said the 19-under domestic and international economic and financial situation and the situation of China's balance of payments, the Bank decided to further advance the reform of the Renminbi exchange rate mechanism, the enhancement of the RMB exchange rate flexibility.

RMB is not a one-time dollar

Bank spokesman in an interview with Xinhua said, this reform in 2005, based on further advancing the reform of the Renminbi exchange rate regime, the Renminbi exchange rate will not be a one-time revaluation adjustment, adhere to market-based, reference to a basket of currencies.

"Bank of the move to the outside world pass out a clearer signal, the reform of China's Renminbi exchange rate will continue to follow the initiative, controllability, progressive principles, this means continued reform ideas previously identified, the overall policy unchanged. "Economics Professor Ding zhijie interview with Xinhua said.

The 2005 reform of the Renminbi exchange rate regime, the reform of the Renminbi exchange rate regime in an orderly way, and achieved the desired effect, has played a positive role. With the introduction of the reform of the renminbi is no longer fixed single US dollar, a more flexible exchange rate mechanism evolved.

Central Bank's monetary policy report shows that since the reform in 2005 to the end of the first quarter of this year, the cumulative renminbi appreciation against the dollar exchange rate, euro 21.24% exchange rate cumulative appreciation 9.34 percent depreciation of the Yen exchange rate cumulative 0.49 per cent. According to the Bank for international settlements, the exchange rate regime since March 2010, RMB nominal effective exchange rate appreciation 14.33% real effective exchange rate appreciation 18.28 per cent.

For the future of the RMB exchange rate, of the monetary policy Committee, Tsinghua University, Professor, David interview with Xinhua said the overall comparison of the balance of payments in China, the future of the RMB exchange rate should be a two-way floating posture, the Renminbi exchange rate will not be a one-time dollar.

However, in comparison with the financial crisis, the Renminbi exchange rate flexibility will be further enhanced. In accordance with the provisions of the Central Bank, May 21, 2007, the interbank spot forex market trading price of the Renminbi against the US dollar, floating rate has been extended to five per par.

Bank spokesman in an interview with Xinhua said will continue to follow the published exchange rate fluctuation in foreign exchange markets, the RMB float for dynamic management and tuning, keep the RMB exchange rate at a reasonable, balanced level of stability. At the same time, to ensure that exchange rate fluctuations and controllable, prevent market forces caused the RMB exchange rate overshoot.

Floating exchange rate in line with the long-term interests of the

Bank spokesman in an interview with Xinhua said that further reform of the Renminbi exchange rate regime, the perfection of a managed floating exchange rate system, is based on China's national conditions and development of the strategic choices, in line with the improvement of the Socialist market economic system reform, in line with the scientific development concept, is the depth into the globalization of national interests, in line with our long-term and fundamental core interests.

The spokesman said, further advancing the exchange rate mechanism, the reform will help to promote structural adjustment and the overall coordination of sustainable development. Floating exchange rate flexibility to adjust the internal and external prices can help direct resources to services such as domestic demand sector configuration, promote industrial upgrading, changing economic development to reduce the imbalance of trade and economic excessive dependence on exports.

Second, help to curb inflation and asset bubbles. Enhanced macroeconomic regulation and the effectiveness of the initiative and to improve macro-control capability.

The third is conducive to maintaining strategic opportunity. As beneficiaries of economic globalization, continue to push the exchange rate regime conducive to the realization of mutual benefit and win-win, long-term cooperation and common development, and maintenance to our country's economic development strategic opportunity and international economic and trade environment.

, David said, "this further advancing the reform of the Renminbi exchange rate regime, which means that Chinese exchange rate policy of the end of the international financial crisis on the special stage, during the return to normal. "It is understood that in 2008 the international financial crisis to global and China economy brought greater difficulty and uncertainty, the appropriate narrow fluctuations of the renminbi in response to the international financial crisis. Compared to the 2005-2007 period for $ render slowly RMB to go higher, since the international financial crisis, the Renminbi against the US dollar exchange rate relative to maintain a certain degree of stability.

It should be emphasized that, in the most severe financial crisis, many countries currencies to the dollar and RMB exchange rate remained stable, this is China on global economic recovery tremendous contribution. , David highlighted that the financial crisis, China's exchange rate policy, and international major countries were also recognized.

, David, said that the current implementation of further promoting exchange rate reform, this is a country made accurate from the overall choice, timing right. "The current economic situation to maintain v-flip, China's economic recovery to the good, the domestic economy focused on accelerating the shift of economic development, promote economic structural adjustment; and international economic recovery, generally speaking, European sovereign debt crises will not continue to deteriorate, the global economy is unlikely to be at the end of the second exploration. In the background, choose further exchange rate reform, back to the exchange rate policy of the current track is undoubtedly the best time. ”

To export more advantages than disadvantages

Exchange rate changes on how enterprise and personal?

To this end, the Bank's press spokesman said in an interview with Xinhua said the major currencies implemented floating regime of contemporary international monetary system, export enterprises must face the local currency and other currencies exchange rates. In a market economy, enterprises engaged in the production and marketing of a variety of economic activities in the market environment is always in constant change, including raw materials prices, wages, market requirements, product structures, as well as interest rate, rate of change, and so on, many factors

Movement is greater than the rate of Exchange.

In fact, since China's reform and opening up, the market-oriented economy has reached a relatively high level, more enterprises have actively adjust and respond to market changes by the flexibility and capacity. From 2005 to 2008, the reform of the international financial crisis worsened in front of the actual situation, exports grew by 23.4%, textiles, light industry, exchange-rate-sensitive industry remains a significant growth, not a loss and closed down.

Central Bank press spokesman said, overall, exchange rate fluctuations to promote industrial upgrading and improving the opening level provides power and pressure, to the promotion of economic development of the mode transition and overall coordination of sustainable development.

This further advancing the reform of the Renminbi exchange rate regime, will not increase bank foreign exchange business costs. And most countries and regions, businesses and individuals for the exchange of business cost is very low.

Bank spokesman said that at present the bank counters corporate and personal foreign exchange settlement business price is based on changes in the interbank market real-time foreign exchange price minus a certain point difference. Under current regulations, the inter-bank foreign exchange market of the Renminbi against the US dollar exchange rate fluctuations of the dollar transactions costing up and down the middle price, bank customers listed in USD on RMB cash sale price may not exceed US $ 1 per cent of the intermediate transactions, cash price of the sale price may not exceed the price of US dollar transactions between 4%, "we will continue to implement this provision".

2005 exchange rate regime

Since 21 July 2005, China began to implement a market-based, reference to a basket currency regulation, a managed floating exchange rate regime. RMB exchange rate are no longer fixed on a single US dollar, a more flexible exchange rate mechanism. On that day, the US dollar price of the RMB exchange to a 1 dollar 8.11 Yuan.