Constructing a safe haven for RMB exchange rates

Author: Gao Yang
Publisher:
Publish Date: 2006-04-01
Features: The reform of the RMB exchange rate system is one of the urgent tasks in China's economic system reform. The reform of the exchange rate system has led to an increase in the volatility of the RMB exchange rate and a greater uncertainty in exchange rate fluctuations. Without appropriate exchange rate tools, the exchange rate system reform could negatively impact the decision-making behavior of relevant entities, directly affecting the stability of the overall economic operation. Establishing an effective exchange rate hedging tool and market is an important part of the systematic project of the exchange rate system reform. The development experience of the international foreign exchange market has proven that the foreign exchange forward market, as the main exchange rate hedging market, plays a significant role in mitigating the negative impact of exchange rate fluctuations on the economy. The main purpose of this book is to study the theory and operational mechanisms of the forward foreign exchange market, summarize and analyze the development experience of foreign countries, and combine the current status and development goals of China's foreign exchange market to provide guiding suggestions for building China's forward foreign exchange market. It is hoped that this book will be helpful to readers in related fields.