On RMB' s Exchange Rate System and Its Exchange Rate Mechanism

The issue of RMB exchange rate focuses on the reasonable assessment of RMB, which depends upon our country' s exchange rate system and its corresponding mechanism. The selection of the exchange rate system in each country is based on the demands of the national situation as well as on the needs of the development of its economy. That the RMB exchange rate system has taken shape in China is precisely the inevitable result of the development of the market economy with Chinese characteristics. Both theory and reality have proved that China's RMB exchange rate system, which adapts to our country's situation, is scientific and reasonable. However, as the system reform is further deepening and the situation at home and abroad keeps changing, China's RMB exchange rate mechanism, the form of realization of the exchange rate system, has slowly revealed its flaws and needs to be adjusted. Therefore, under the precondition that the exchange rate is kept basically stable, it is the fundamental solution to the issue of RMB Exchange rate to reform and perfect the RMB Exchange rate mechanism.