Abstract:
Currency policy adjustment on August 11 of 2015 implies another important step taken for making RMB exchange rate regime to be more market determined. Further reform in RMB exchange rate formation mechanism must respect law of value which means the market price is driven by the fair value but fluctuated around it. The reform should be kept at the market-oriented path. The Authorities should adhere to the belief in strong RMB which should not be misled by market expectation. The market participants must overcome fear of floating and adapt themselves to regular and frequent two-way movement of RMB exchange rate. Meanwhile, the central bank would keep the proper right to step into the market when the market exchange rate witnesses excessive volatility in short-term or persistent deviation from its equilibrium level.
管涛. 尊重价值规律:人民币汇率形成机制改革未来之出路[J]. 金融研究, 2016, 428(2): 113-120.
GUAN Tao. Respecting Law of Value: Wayout for Further Reform in RMB Exchange Rate Formation Mechanism. Journal of Financial Research, 2016, 428(2): 113-120.
IMF, 2012, “People's Republic of China: Staff Report for the 2012 Article IV Consultation”, IMF Country Report, No. 12/195, Jul 24: http://www.imf.org/external/pubs/ft/scr/2012/cr12195.pdf.
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IMF, 2015, “People's Republic of China: Staff Report for the 2015 Article IV Consultation”, IMF Country Report, No. 15/234, Aug 14: http://www.imf.org/external/pubs/ft/scr/ 2015/cr15234.pdf.
