Reform of China's Foreign Exchange Rate System: How the Newly Adopted Managed Floating System Actually Works

5 Pages Posted: 22 Feb 2006

See all articles by C. H. Kwan

C. H. Kwan

Nomura Institute of Capital Markets Research

Abstract

The foreign exchange rate system adopted by China in July 2005 can be characterized as a manage floating system based on the BBC rules-band, basket and crawl. However, the authorities have continued to suppress the yuan's rise against the dollar by intervening in the foreign exchange market, and the C in BBC has looked more like control than crawl.

Keywords: yuan, band, basket, crawl

JEL Classification: F31

Suggested Citation

Kwan, C.H., Reform of China's Foreign Exchange Rate System: How the Newly Adopted Managed Floating System Actually Works. Nomura Capital Market Review, Vol. 8, No. 4, pp. 38-42, Winter 2005, Available at SSRN: https://ssrn.com/abstract=876390

C.H. Kwan (Contact Author)

Nomura Institute of Capital Markets Research ( email )

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