Debates and Discussions on Real-World Issues of RMB Exchange Rate

Author: Dong Liwei
Publisher:
Publish Date: 2004-04-01
Features: This book is divided into two parts and an appendix. The first part summarizes various views from domestic and international institutions and experts on adjusting the RMB exchange rate, revealing the economic and political backgrounds of different arguments. It points out "misunderstandings" in people's perceptions of exchange rate changes, clarifies the pros and cons of RMB appreciation, proposes reasonable measures to alleviate the pressure of RMB appreciation, such as issuing B bonds, and teaches people to understand the laws of market changes in the context of national conditions, to judge the possibility of changes based on the main considerations of the Chinese government in adjusting the exchange rate, and to analyze the short-term, medium-term, and long-term trends. The second part introduces new financial products popular in the world, including hedge funds, as well as various means of avoiding investment risks, such as hedging foreign exchange risks, and elaborates in detail the operational process of using derivative financial instruments for risk avoidance. Dedicated readers can master the practical operational skills of derivative financial instruments to a certain extent. For in-depth research, the appendix also introduces authoritative international investment portfolio theory and typical exchange rate theories in the world. At the same time, it analyzes the laws of exchange rate changes using quantitative formula methods, i.e., by comparing the exchange rate policy actually adopted in China with the theoretical exchange rate—equilibrium exchange rate, it analyzes in detail the degree of influence of each factor on the exchange rate in the context of China, and clarifies the direction and level (speed) of the actual exchange rate regression in China.