The Appreciation of Rmb
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Guangdong University of Technology
School of Management
Term Paper of International Business
The influence of the RMB appreciation on China’s
external trade and countermeasures
Group No.: Team 9 谢奇（3211004310） 黄静君（3211004300） 黎启翠（3211004301） 严佳杰（3111004291） 陈伟场（3111004280）
June 20th, 2013
Content
Abstract 2
Introduction 2
Advantages 2
Disadvantages 3
Measures 4
Conclusion 6
References 6
Abstract: Recently, the appreciation of RMB has been a hot topic and caused a heated debate. For China, it not only involves the changes in the RMB revaluation, but also affects China 's external trade. Through reviewing the RMB exchange rate system’s reform process in recent years, this article amylases its positive and negative effects for import and export trade in our country, especially the influence on China 's main export industry, and the continued RMB appreciation under the trend of study of China 's foreign trade policy adjustment, at the same time give suggestion to both government and enterprises.
Key word: RMB appreciation, external trade, process, positive, negative
I Introduction As the comprehensive strength of the national economy grows, the Chinese currency, the RMB began to appreciate. Since the implementation of China’s exchange rate reform in July of 2005, RMB has appreciated from 1 US dollar to 8.11 yuan to 6.82 yuan by December of 2008, with an accumulated appreciation of 15.8%. Though full of controversy, the appreciation of the RMB has become common expectations. Effects of the RMB 's appreciation have been felt both domestically and abroad, and will become even more significant with time. On January 4, 2006, the RMB exchange rate began to rise significantly at 8.0702, experienced a jump from slowly upward to run. On September 28th, it broke of 7.900, in December 29th, the RMB exchange rate broke the record again, and
Guangdong University of Technology
School of Management
Term Paper of International Business
The influence of the RMB appreciation on China’s
external trade and countermeasures
Group No.: Team 9 谢奇（3211004310） 黄静君（3211004300） 黎启翠（3211004301） 严佳杰（3111004291） 陈伟场（3111004280）
June 20th, 2013
Content
Abstract 2
Introduction 2
Advantages 2
Disadvantages 3
Measures 4
Conclusion 6
References 6
Abstract: Recently, the appreciation of RMB has been a hot topic and caused a heated debate. For China, it not only involves the changes in the RMB revaluation, but also affects China 's external trade. Through reviewing the RMB exchange rate system’s reform process in recent years, this article amylases its positive and negative effects for import and export trade in our country, especially the influence on China 's main export industry, and the continued RMB appreciation under the trend of study of China 's foreign trade policy adjustment, at the same time give suggestion to both government and enterprises.
Key word: RMB appreciation, external trade, process, positive, negative
I Introduction As the comprehensive strength of the national economy grows, the Chinese currency, the RMB began to appreciate. Since the implementation of China’s exchange rate reform in July of 2005, RMB has appreciated from 1 US dollar to 8.11 yuan to 6.82 yuan by December of 2008, with an accumulated appreciation of 15.8%. Though full of controversy, the appreciation of the RMB has become common expectations. Effects of the RMB 's appreciation have been felt both domestically and abroad, and will become even more significant with time. On January 4, 2006, the RMB exchange rate began to rise significantly at 8.0702, experienced a jump from slowly upward to run. On September 28th, it broke of 7.900, in December 29th, the RMB exchange rate broke the record again, and
References: BEI Duoguang, ZHU Xiaoli(2008). A new monetary phenomenon: An analysis of the co-existence of the external appreciation and the domestic inflation of RMB [J].Frontiers of Economics in China, 3(3):327-355.DOI:10.1007/s11459-008-0016-6 Sung Yeung Kwack, Choong Y. Ahn, Young S. Lee, Doo Y. Yang(April 2007).Consistent estimates of world trade elasticities and an application to the effects of Chinese Yuan (RMB) appreciation Journal of Asian Economics, Volume 18, Issue 2, Pages 314–330 http://dx.doi.org/10.1016/j.asieco.2007.01.003 China’s currency(Feb 9th 2013) Yuan for the money http://www.economist.com/news/leaders/21571442-rise-chinas-currency-will-change-way-world-does-business-yuan-money Hongjin Xiang,Zheng Zhan,Mingyong Lai(2006).The Trade Destruction Effect and Trade Diversion Effect of RMB Appreciation[J].中国经济前沿,06(3):479-493.DOI:10.1007/s11459-011-0143-3. [pic]