A Thought on Extending the Floating Range of Exchange Rate in China

s: Under the circumstances that China is going to enter WTO, and economic gate will be gradually opened, exchange rate is the first important core in various economic varieties, because the status of various economic varieties under opening economy will finally be, to different extent, reflected in the exchange rate, and the adjustment of exchange rate will make a notable on the operation of opening economy from macro economy to micro economy in different fields. But our current institution of exchange rate can only hardly be apt to the acquirement in fact. It is mainly that, on the experience of our county, the managed floating exchange rate is, in fact, fixed exchange rate, under the circumstances there are faults which can't be virtually changed in short term(i.e. in 3 5 years, not over 10 years),near 2 thousands of hundred million dollars (U.S.A.) international reserve can't effectively protect the fixed exchange in front of over 2 million dollars (U.S.A).So, floating exchange rate target zone with some wave will substitute for the fixed exchange rate .