Based on the interpretation of the current reform of RMB exchange rate formation mechanism, this paper expounds the influence of the reform of RMB exchange rate formation mechanism on China's employment, trade, balance of payments, macroeconomic development, etc., and holds that the current RMB exchange rate formation mechanism is inconsistent with the reality of China's economic development in a certain period of time, and the reform of RMB exchange rate formation mechanism in China cannot be eager for quick success and instant benefit, but blindly pursues the realization of "balanced exchange rate" and must obey the needs of national development. In the near future, we will adhere to a managed floating exchange rate system based on market supply and demand, and on the basis of stabilizing the RMB exchange rate, gradually increase the flexibility of the RMB exchange rate, improve the exchange rate formation mechanism, and focus on the construction of the foreign exchange market and the opening of the capital account.
Perfecting the exchange rate formation mechanism is inseparable from the foundation of the foreign exchange market. In a country's exchange rate formation mechanism, the exchange rate decision was born in the foreign exchange market, which plays a fundamental role. At present, the depth and breadth of China's foreign exchange market are limited, and the price discovery, resource allocation, deficit hedging and traders' operating system need to be improved, which makes the formation of RMB exchange rate lack of market foundation. However, the lagging development of China's foreign exchange market has become a realistic obstacle to the marketization of RMB exchange rate formation mechanism. Only by accelerating the construction of foreign exchange market and improving market rules can we promote the further reform of RMB exchange rate formation mechanism.
The opening of capital account improves the efficiency of resource allocation through the free flow of cross-border capital. At present, there is a lack of coordination between capital account control and exchange rate formation mechanism in China. Improve the RMB exchange rate formation mechanism, increase exchange rate flexibility and choose to relax capital controls, so as to reduce the risk of capital account opening, and give play to the regulatory role of effective exchange rate on the balance of payments and the decisive role of capital account in exchange rate formation.
Improve the foreign exchange market, gradually open the capital account, and the real exchange rate reflects the changes in market supply and demand, laying the foundation for further marketization of the exchange rate. Only by mastering the initiative, controllability and gradualism of exchange rate reform, taking into account the affordability of all aspects, and closely coordinating and coordinating the reform of exchange rate formation mechanism with the construction of foreign exchange market and the opening of capital account can we effectively avoid financial market turmoil and economic fluctuations.
China? Better translation suggestions for English translation
Thank you for providing translation suggestions for Google Translate. When updating the system in the future, we will adopt your suggestions to improve the translation quality. In recent years, with the increasing influence of China's economy on the world economy, the reform of RMB exchange rate formation mechanism has become the focus of international and domestic society. On 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. Since then, the exchange rate system of RMB pegged to the US dollar has been abandoned, and a more flexible RMB exchange rate system has been formed. & ltbr & gt Based on the interpretation of the current reform of RMB exchange rate formation mechanism, this paper expounds the influence of the reform of RMB exchange rate formation mechanism on China's employment, trade, balance of payments and macro-economic development, and holds that the current RMB exchange rate formation mechanism is inconsistent with the reality of China's economic development in a certain period of time, and the reform of RMB exchange rate formation mechanism in China cannot be eager for quick success and instant benefit, but blindly pursues the realization of "balanced exchange rate". Moreover, we must obey the needs of national development, adhere to a managed floating exchange rate system based on market supply and demand in the near future, and gradually increase the flexibility of RMB exchange rate on the basis of stabilizing the RMB exchange rate, improve the exchange rate formation mechanism, and focus on the construction of foreign exchange market and the opening of capital account. & ltbr & gt Perfecting the exchange rate formation mechanism is inseparable from the foundation of the foreign exchange market. In a country's exchange rate formation mechanism, the exchange rate decision was born in the foreign exchange market, which plays a fundamental role. At present, the depth and breadth of China's foreign exchange market are limited, and the price discovery, resource allocation, deficit hedging and traders' operating system need to be improved, which makes the formation of RMB exchange rate lack of market foundation. However, the lagging development of China's foreign exchange market has become a realistic obstacle to the marketization of RMB exchange rate formation mechanism. Only by accelerating the construction of foreign exchange market and improving market rules can we promote the further reform of RMB exchange rate formation mechanism. The opening of & ltbr & gt capital account improves the efficiency of resource allocation through the free flow of cross-border capital, but there is a lack of coordination between the current capital account control and exchange rate formation mechanism in China. Improve the RMB exchange rate formation mechanism, increase exchange rate flexibility and choose to relax capital controls, so as to reduce the risk of capital account opening, and give play to the regulatory role of effective exchange rate on the balance of payments and the decisive role of capital account in exchange rate formation. & ltbr & gt Improve the foreign exchange market, gradually open the capital account, and the real exchange rate reflects the changes in market supply and demand, laying the foundation for further marketization of the exchange rate. Only by mastering the initiative, controllability and gradualism of exchange rate reform, taking into account the affordability of all aspects, and closely coordinating and coordinating the reform of exchange rate formation mechanism with the construction of foreign exchange market and the opening of capital account can we effectively avoid financial market turmoil and economic fluctuations.