Constructing a Safe Haven for RMB Exchange Rates - A Study on China's Foreign Exchange Derivatives Market

Author: Gao Yang
Publisher:
Publish Date: 2006-05-01
Features: The reform of the RMB exchange rate system is one of the urgent tasks of 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 enhanced uncertainty in exchange rate fluctuations. Without appropriate exchange rate instruments, the exchange rate reform will negatively impact the decision-making behavior of relevant entities, directly affecting the stability of the overall economic operation. Establishing an effective exchange rate hedging instrument 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 offsetting 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 the construction of China's forward foreign exchange market. It is hoped that this book will be helpful to readers in related fields.