Reform of the RMB Exchange Rate Regime : Impact and Risks

WEN Bin

 
Editorial note:

The People’s Bank of China announced that, as of July 21st, 2005, China’s exchange
rate regime would change into a managed float based on market supply and demand and with reference
to a basket of currencies. The RMB would no longer be pegged to the US dollar, its exchange rate
would be more flexible and the exchange rate of the yuan against the dollar was revalued upwards by
2%. This announcement unveiled the much-deliberated reform of the RMB exchange rate. What
impact will the reform have upon the Chinese economy? How should China guard against exchange
rate risks? Professor Wen Bin’s thesis offers a statistical analysis upon these two questions.

¥0.01加入购物车