China’s Evolving Exchange Rate Regime

March 7, 2019

Preview Citation

Format: Chicago

Sonali Das. China’s Evolving Exchange Rate Regime, (USA: International Monetary Fund, 2019) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

China’s exchange rate regime has undergone gradual reform since the move away from a fixed exchange rate in 2005. The renminbi has become more flexible over time but is still carefully managed, and depth and liquidity in the onshore FX market is relatively low compared to other countries with de jure floating currencies. Allowing a greater role for market forces within the existing regime, and greater two-way flexibility of the exchange rate, are important steps to build on the progress already made. This should be complemented by further steps to develop the FX market, improve FX risk management, and modernize the monetary policy framework.

Subject: Currencies, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, Foreign exchange, Money

Keywords: Currencies, Dollar, Exchange rate, Exchange rate arrangements, Exchange rate flexibility, Exchange rates, Foreign exchange, Foreign exchange market, Formation mechanism, FX market, Global, Liquidity, Market, Parity rate, People's Bank of China, Reminbi, RMB, RMB exchange rate indices, USD depreciation, USD rate, WP

Publication Details

Pages:

31
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2019/050
Stock No:

WPIEA2019050
ISBN:

9781498302029
ISSN:

1018-5941

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