RMB Exchange Rate Regime and RMB Internationalization

The internationalization of home currency is not certainly related with the type of exchange rate regime.The stability and predictability of home currency value is one of the important attributes in improving the demand strength of national currency.The paper analyses the principal features and defects of RMB exchange rate regime after the reform of exchange rate regime in 2005.It proposes that in the process of the marketization of RMB exchange rate,it needs new ways to keep RMB exchange rate stable in order to provide a more stable expectation for microeconomic agents.The future RMB exchange rate regime should mirror the changes of the balance of international payments and foreign exchange market quite well,and promote the comprehensive stability of RMB exchange rate against key currencies.At present,we should perfect the conditions of foreign exchange market and create an environment for the double-way fluctuation of RMB to advance the offshore use of RMB and RMB internationalization.