The Strategic Choice to Deepen the RMB Exchange Rate Reform

Deepening the RMB exchange rate reform includes two major aspects:to further improve the RMB exchange rate formation mechanism and to implement the positive RMB exchange rate policy.The kernel issue in im- proving the RMB exchange rate formation mechanism continues to accelerate the development and innovation of the foreign exchange market,and the positive RMB exchange rate policy is to adopt effective policies and mea- sures to actively cope with the severe challenges.For a period form now on,the main task to implement the active RMB exchange rate policy is to weaken and eliminate the RMB revaluation expectation under the stable exchange rate premise.There are four major strategies of the policy,i.e.:using multi-level policy combina- tion,adjusting both the nominal exchange rate and the real exchange rate,innovating foreign exchange reserves management and improving foreign exchange management system.