Professional Documents
Culture Documents
Ep 2
Ep 2
trade imbalance
Yongwei wang
Economic policy
30/11/2022
contents
• Five exchange rate regime
• China’s managed floating exchange rate
• Trade balance
• How china manage the exchange rate and
benefit from it
• conclusion
four exchange rate regimes
• Dollarisatio regime
• linked exchange rate regime
• managed floating exchange rate regime",
where central banks can intervene as
appropriate
• fully floating exchange rate regime" for the
Japanese yen, US dollar and eurozone
currencies.
China’s managed floating exchange
rate
• Base Rate
In July 2005, the people’s bank of China
announced that, China would be reforming
the Renminbi exchange rate regime moving to
a managed float based on market demand.
• Huge foreign currency reserved
China’s foreign reserves