A View of the Future for the Renminbi Exchange Rate
The trend for the renminbi's exchange rate is consistent with expectations for China's economic growth. The current level of capital outflows from China is reasonable as it reflects the nation's transformation into a major exporter of capital. In 2017, however, the main factors in determining the renminbi exchange rate will not be domestic in origin. Instead, the renminbi will take its cue from the state of the US economy as well as developments in Sino-US relations amid the uncertainties brought about by the election of Donald Trump as America's president. This paper looks at the future of the renminbi exchange rate mechanism and the possible downplaying of the role of a currency basket as well as the eventual realization of a clean float of the renminbi.
【CateGory Index】： F832.6