Saturday, 7 February 2015

The reform of China's exchange rate system

As the US economy undergoes sustainable recovery, the Federal Reserve ends the quantitative easing of its monetary policy, and the central banks of some European countries and Japan successively launch QE programs. Global oil prices also keep going down. Therefore, it is likely to be a trend that, in the future, the US dollar will remain strong over a period of time.

A strong US dollar will not only heighten global market volatility and affect the development of some emerging economies, but also bring certain challenges to China’s exchange rate system and related reforms.

Therefore, against the backdrop of the strong dollar, deepening the reform of China’s current exchange rate system should be the objective of the market-oriented reforms of the RMB exchange rate formation mechanism in 2015.


Read more at Click here / www,trade4x.net


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