China’s Evolving Exchange Rate Regime

Author/Editor:

Sonali Das

Publication Date:

March 7, 2019

Electronic Access:

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Disclaimer: 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.

Summary:

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.

Series:

Working Paper No. 19/50

Subject:

English

Publication Date:

March 7, 2019

ISBN/ISSN:

9781498302029/1018-5941

Stock No:

WPIEA2019050

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

31

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