A: The exchange rate system is the result of the development of the monetary system, especially the international monetary system, and the root of the exchange rate problem.
The first international monetary system in the world was the international gold standard. 1880- 19 14 These 35 years are the golden age of the international gold standard. Under the international gold standard, the exchange rates of various currencies are determined by the ratio of their respective gold contents. Because of the outbreak of World War I in 19 14, the participating countries banned the export of gold and stopped the exchange of paper money for gold, and the international gold standard was seriously weakened. Under the impact of 1929- 1933 economic crisis, the international gold standard finally collapsed, and then the international monetary system was in chaos until 1944. Under the Bretton Woods system, an adjustable fixed exchange rate system based on gold and dollars was established, which played a positive role in the development of capitalist economy after the Second World War. After the 1960s, the US foreign exchange balance deficit appeared in large quantities, and the gold reserves flowed out in large quantities, which led to the frequent occurrence of the US dollar crisis. 197 1 On August 5, 2008, the United States publicly abandoned the gold standard. 19 In February, the United States announced the depreciation of the US dollar against gold. From June 1972 to early 1973, the US dollar broke out twice. In March 12, the US government devalued the US dollar again. From April 1974 to April 1, the fixed relationship between money and gold was formally excluded in international agreements, and the Bretton Woods system centered on the dollar completely collapsed. It was replaced by the Jamaican system. Under the Jamaican system, the exchange rate system is diversified and can be mainly divided into three categories: adjustable pegged exchange rate system, limited floating exchange rate arrangement and more flexible floating exchange rate arrangement. An ideal international monetary system can promote the development of international trade and international economic activities, which is mainly reflected in stabilizing the international monetary order, providing sufficient international liquidity, maintaining the confidence of countries in international reserve assets, and ensuring that countries can be effectively and stably regulated when the balance of payments is unbalanced.
The current RMB exchange rate system in China is based on the economic and financial development of China.
The RMB exchange rate is determined by market supply and demand, and the RMB exchange rate system is a managed floating exchange rate system based on market supply and demand. The People's Bank of China keeps the RMB exchange rate relatively stable through market operation. Practice has proved that the implementation of a managed floating exchange rate system is the correct choice in line with China's national conditions. After joining WTO, with the changes of trade and investment, the balance of payments may change greatly, and at the same time it will face greater external shocks. To this end, we will continue to implement a managed floating exchange rate system based on market supply and demand, further improve the exchange rate formation mechanism, strengthen the coordination of local and foreign currency policies, and play the role of exchange rate in balancing international payments and resisting the impact of international capital flows on the premise of maintaining the basic stability of the RMB value. Since July 2, 2005, China began to implement a managed floating exchange rate system based on market supply and demand and with reference to a basket of currencies. The main contents of this exchange rate mechanism reform include three aspects:
The first is the way of exchange rate regulation. We will implement a managed floating exchange rate system based on market supply and demand and adjusted with reference to a basket of currencies. The RMB exchange rate is no longer pegged to a single dollar, but fluctuates with reference to a basket of currencies according to market supply and demand. The "basket currency" here refers to selecting several major currencies and giving them corresponding weights according to the actual situation of China's foreign economic development to form a basket currency. At the same time, according to the domestic and international economic and financial situation, based on market supply and demand, the change of RMB multilateral exchange rate index is calculated with reference to a basket of currencies, and the RMB exchange rate is managed and adjusted to keep the RMB exchange rate basically stable at a reasonable and balanced level. The currency composition in the basket will comprehensively consider the major countries, regions and their currencies that account for a large proportion of China's foreign trade, foreign debt, foreign direct investment and other foreign trade activities. Reference to a basket indicates that exchange rate changes between foreign currencies will affect the RMB exchange rate, but reference to a basket of currencies does not mean pegging to a basket of currencies. It also needs to take the relationship between market supply and demand as another important basis for the formation of a managed floating exchange rate. This will help to increase exchange rate flexibility, curb unilateral speculation and maintain multilateral exchange rates.
The second is the determination of the median price and the daily floating range. The People's Bank of China announces the closing price of US dollar and other trading currencies against RMB in the inter-bank foreign exchange market on that day after the market closes every working day, as the middle price of the currency against RMB on the next working day. At present, the daily trading price of USD against RMB in the inter-bank foreign exchange market still fluctuates within the range of 0.3% above and below the median price of USD trading announced by the People's Bank of China, and the trading price of non-USD currencies against RMB is stable within the range of 3% above and below the median price of currency trading announced by the People's Bank of China.
The third is the adjustment of the initial exchange rate. On July 2, 2005 1 day 19, the transaction price of USD against RMB was adjusted to1USD against RMB 8. 1 1 Yuan. As the middle price of transactions between designated foreign exchange banks in the inter-bank foreign exchange market the next day, the designated foreign exchange banks can adjust the listed exchange rate for customers from now on. This is a one-time small appreciation of 2%, not the first step of RMB exchange rate adjustment of 2%, and there will be further adjustment afterwards. Because the focus of RMB exchange rate system reform is the reform of RMB exchange rate formation mechanism, rather than the increase or decrease of RMB exchange rate level in quantity. The adjustment range is mainly determined according to the degree of China's trade surplus and the needs of structural adjustment, and the adaptability of domestic enterprises to structural adjustment is also considered.
At present, the trend of RMB exchange rate is continuous appreciation, which will have a far-reaching impact on China's economy and the world economy.
The appreciation trend of RMB exchange rate is in line with the economic development of China and will play a certain role in easing China's trade surplus. The trend of RMB appreciation will not have much negative impact on China's trade. The appreciation of RMB and the decline in the prices of foreign products are conducive to increasing China's imports of foreign high-quality consumer goods and production equipment, improving living standards and industrial manufacturing level, enhancing the ability of enterprises to invest abroad, increasing the attractiveness of China's currency, and promoting China's position in the world economy. China's trade will still develop greatly, but the structure of export commodities will be more highly developed, and the added value of export products will be higher and higher. People should pay more attention to the impact of RMB appreciation on domestic economic balance and industrial structure adjustment.
China's RMB exchange rate will certainly play a greater role.
Promoting the RMB exchange rate reform mechanism is the need to alleviate the imbalance of foreign trade, expand domestic demand, enhance the international competitiveness of enterprises and improve the level of opening up. In recent years, the double surplus of current account and capital account in China has continued to expand, which has aggravated the imbalance of international payments. Properly adjusting the RMB exchange rate level and reforming the exchange rate formation mechanism are conducive to the implementation of the economic sustainable development strategy of giving priority to domestic demand and optimizing resource allocation. It is conducive to enhancing the independence of monetary policy and improving the initiative and effectiveness of financial supervision. It is conducive to maintaining the basic balance between import and export and improving the terms of trade. It is conducive to maintaining price stability and reducing enterprise costs. It is beneficial for enterprises to change their management mechanism, enhance their independent innovation ability, accelerate the transformation of foreign trade growth mode, and improve their international competitiveness and anti-risk ability. It is conducive to optimizing the structure of foreign capital and improving the effect of utilizing foreign capital. It is conducive to making full use of "two resources" and "two markets" and improving the level of opening up.