Cover IMF Working Papers
China’s Evolving Exchange Rate Regime
Author: Miss Sonali Das
Series:
IMF Working Papers
Volume/Issue:
Volume 2019: Issue 050
Language:
English
Publication Date:
07 Mar 2019
DOI:
https://doi.org/10.5089/9781498302029.001
ISBN:
9781498302029
ISSN:
1018-5941
Pages:
31
Keywords:
WP; RMB; exchange rate; dollar; market; People's Bank of China; reminbi; foreign exchange market; liquidity; USD rate; foreign exchange; formation mechanism; FX market; parity rate; USD depreciation; RMB exchange rate indices; Exchange rates; Exchange rate flexibility; Exchange rate arrangements; Currencies; Global
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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.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund