An analysis of the Cause of RMB Appreciation Pressure and Way to Remove it

This paper analyses the pressure of RMB appreciation,which is led by the China’s disequilibrium in domestic and international economy,the lasting double favorable balance of payment,and no wage promotion responding to productivity improvement.The author believes that to appreciate RMB exchange rate sharply is disadvantageous for China and even for the whole world economic development,and that to speed up economic growth mode transform through establishing competitive factor market,to make RMB exchange rate more flexible and reflect the change of market supply and demand through improving the RMB exchange rate formation mechanism can remove the pressure of RMB appreciation.