| Author | Liu, Guojie |
| Call Number | AIT RSPR no.SM-03-40 |
| Subject(s) | Foreign exchange rates--China
|
| Note | A research study submitted in partial fu lfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-03-40 |
| Abstract | The choice of appropriate exchange rate regime has been one of the prominent issues of
widening debate after the recent financial crises in the developing countries. Currently,
the China's foreign exchange system combines a virtual peg to the US dollar with direct
and comprehensive capital account controls. In the end 2001, China finally entered WTO
after 15 years negotiation.
With the liberalization of trade and investment step by step, China is likely to experience
an increase in nominal and real shocks in the medium term. Recently, China has
frequently received pressure from the IMF and some trade partners to change to a more
flexible exchange rate policy. Should China make a fundamental shift to flexible
exchange rate regime? What are the preconditions for China to achieve a flexible
exchange rate arrangement? This paper is to examine these issues in both theoretical and
practical perspectives. In short term, it is better for China to keep the peg while China
must push the economic reform further. With the development of financial sector and
satisfaction of some preconditions, China can float its currency with a band or have a
similar arrangement and gradually loose the capital account control. A sound exit strategy
is also vital to the transition of exchange rate regime for China. |
| Year | 2003 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-03-40 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S. |
| Examination Committee(s) | Singha Chiamsiri;
Sununta Siengthai |
| Scholarship Donor(s) | China Scholarship Council |
| Degree | Research report (M.Sc.) - Asian Institute of Technoloyg, 2003 |