Second, it is generally believed that countries with high inflation rate are suitable for adopting fixed exchange rate system, while countries with low inflation rate are suitable for adopting floating exchange rate system;

Third, under the background of globalization, if a country has relaxed the restrictions on the inflow and outflow of international capital, and the monetary authorities do not have enough foreign exchange reserves, it is appropriate to adopt a floating exchange rate system, otherwise it is appropriate to adopt a fixed exchange rate system.

(2) 1994, China reformed the RMB exchange rate system and began to implement a single and managed floating exchange rate system based on market supply and demand; In 2005, China further promoted the reform of exchange rate formation mechanism, and implemented a managed floating exchange rate system based on market supply and demand with reference to a basket of currencies, which increased exchange rate flexibility.

(3) With the development of China's economy and the gradual deepening of economic and financial opening up, under the background of economic globalization, as an economic power, the goal of China's exchange rate system reform is to establish and improve a managed floating exchange rate system based on market supply and demand, and keep the RMB exchange rate basically stable at a reasonable and balanced level. The reform of exchange rate system should adhere to the principles of initiative, controllability and gradualism.