Formation mechanism, referred to as mechanism, is actually the choice of exchange rate regime.
The choice of exchange rate mechanism is that we improve the exchange rate mechanism.
We must take full account of the social and economic capacity to avoid large fluctuations in exchange rates.
In the new opening situation after China’s entry into WTO, the necessity of perfecting the exchange rate formation mechanism is obvious.
The core content of improving the formation mechanism of RMB exchange rate includes at least five aspects, that is, improving the decision-making basis of exchange rate, correcting the distortion of exchange rate formation mechanism, improving and perfecting, increasing the flexibility of exchange rate and improving the adjustment mechanism of exchange rate.
The essence of improving the exchange rate mechanism is to enhance the marketization degree of exchange rate formation, rather than simply adjust the level of exchange rate.
