On Rearrangement of RMB Exchange Rate System under the Open Policy Circumstances

Rearrangement of the RMB exchange rate system appears increasingly necessary under the circumstances of a continuously quickened openness of financial industries after Chinas joining of WTO. Under the condition of no convertibility of capital account, RMB is arranged with a managed floating exchange rate system; after capital account is convertible, then RMB can be rearranged with a totally free convertible floating exchange rate system. Meanwhile, it s compulsory to transit RMB from solely gazing at US Dollar to gazing at such a package currency as US Dollar, Euro, Japanese Yen, Hong Kong Dollar, etc. , realizing market-orientation of RMB exchange rate system, and making RMB exchange rate indeed able to reflect demand and supply in foreign exchange market.