From the founding of New China to the reform and opening up, the RMB exchange rate has been strictly managed and controlled by the state. Before the reform and opening up, China's exchange rate system experienced a single floating exchange rate system (1949 ~ 1952) in the early days of the founding of New China, a single fixed exchange rate system (1953 ~ 1972) in the 1950s and 1960s, The single floating exchange rate system based on "a basket of currencies" after the Bretton Woods system (65438 after the Third Plenary Session of the Eleventh Central Committee) experienced two dual-track exchange rate periods: the coexistence of official exchange rate and internal settlement price of trade foreign exchange (198 1 ~ 1984) and the coexistence of official exchange rate and foreign exchange swap price (14).
1994-2005 RMB exchange rate formation mechanism
19931993 In February, the State Council officially issued the Notice on Further Reforming the Foreign Exchange Management System, and adopted a series of important measures, including: realizing the integration of the official RMB exchange rate with the foreign exchange swap price; Establish a single and managed floating exchange rate system based on market supply and demand; Cancel the foreign exchange retention and implement the system of settlement and sale of foreign exchange; Establish a unified national foreign exchange trading market. 1 994 65438+1October1,the official RMB exchange rate and the foreign exchange swap price were formally merged, and China began to implement a single and managed floating exchange rate system based on market supply and demand. Enterprises and individuals buy and sell foreign exchange from banks according to regulations, and banks enter the inter-bank foreign exchange market for transactions, forming a market exchange rate. 1997 after the Asian financial crisis, China took the initiative to narrow the floating range of RMB exchange rate. Since then, foreign exchange control has been further relaxed.
RMB exchange rate formation mechanism since 2005
On July 2, 2005, China reformed the RMB exchange rate formation mechanism. The RMB exchange rate is no longer pegged to a single dollar, but several major currencies are selected to form a basket of currencies, and the changes of the RMB multilateral exchange rate index are calculated with reference to the basket of currencies. We will implement a managed floating exchange rate system based on market supply and demand and adjusted with reference to a basket of currencies. Since the reform of RMB exchange rate formation mechanism, on the basis of market supply and demand, the RMB has generally appreciated slightly. To keep the RMB exchange rate basically stable at a reasonable and balanced level, the smooth implementation of the new RMB exchange rate system fully proves that "a managed floating exchange rate system based on market supply and demand and adjusted with reference to a basket of currencies" conforms to the initiative, controllability and gradual requirements of China's exchange rate reform. The RMB exchange rate will remain basically stable at a reasonable and balanced level based on market supply and demand and with reference to a basket of currencies. On July 2, 2005, after the reform of RMB exchange rate formation mechanism, the People's Bank of China announced the closing price of RMB against USD and other trading currencies in the inter-bank foreign exchange market on that day after the market closed every working day, as the middle price of RMB trading on the next working day. 65438+From April 4th, 2006 10, the People's Bank of China authorized China Foreign Exchange Trading Center to announce the central parity of RMB against USD, EUR, JPY and HKD at 9: 00 every working day as the central parity of spot foreign exchange market (including off-site and matchmaking methods) and over-the-counter exchange rate of banks.
From July 2005 to July 2008, RMB appreciated by 2 1% against the US dollar, while China's trade surplus with the US increased significantly.
In 2008, in response to the international financial crisis, China appropriately narrowed the fluctuation range of RMB exchange rate. At the worst of the international financial crisis, the currencies of many countries depreciated sharply against the US dollar, while the RMB exchange rate remained basically stable.
201June 19, a spokesman for the people's bank of China said that the people's bank of China decided to "further promote the reform of RMB exchange rate formation mechanism and enhance RMB exchange rate flexibility".