An Empirical Analysis on the Effect of Central Bank on RMB Exchange Rate Pricing

In this paper,based on the theory of Central bank's intervention of exchange rate,taking the Central bank's effect on RMB exchange rate as the object of research,I use the method of combining theoretical analysis with empirical analysis,by reviewing the effect of Central bank's intervention on RMB exchange rate from 1994 to 2009,and find that in the process of RMB exchange rate formation,Central bank has the right to monopoly pricing,and other banks are all the price followers.Although with the reform of foreign exchange rate system,there has been a gradual decrease in Central bank's intervention,Central bank is still the biggest buyer on foreign exchange rate market.Therefore,RMB exchange rate does not really reflect the market supply and demand relationship,we should make countermeasures to promote the marketization of RMB exchange price.