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A tentative attempt:|
For the past two year, RMB exchange rate reform has been the focus of extensive worldwide interest. Since 1994, we have carried out major reform on the foreign exchange administration system. With complete relaxation on foreign exchange for regular items, RMB exchange rate is in reality administered under what is known as controlled floating rate system and has been maintained at around 8.27 level (US$) for many years. Due to rapid expansion of our economy, foreign trade imbalances are widening, foreign exchange reserves is increasing drastically. More and more people come to realized the necessity of adopting a more flexible foreign exchange control mechanism.
On July 21, the Central Bank announced the implementation of controlled foreign exchange rate system, based on market supply and demand, regulated through a basket of foreign currencies. The Central Bank announcement consists of three major aspects: First, adjust US$ to RMB rate from 8.28 to 8.11, an increase of 2%; second, de-link RMB from US$, with exchange rate determines by reference to a basket of currencies; third, maintain exchange rate fluctuation within 3% range of the previous trading day’s closing price.
8月9日，央行宣布改革银行间外汇市场，为非银行金融机构和非金融企业进入该市场开了“绿灯”，同时首次引入询价这种更为市场化的交易方式，首次允许在该市场内开展远期外汇交易Foreign Exchange Forward和掉期交易swap。这意味着，央行正致力于逐步推进人民币汇率的市场化。
On August 9, the inter-bank forex market reform initiated by Central Bank has green lighted the entrance of non-banking financial institutions as well as non-financial enterprises. With simultaneous introduction of the market practice of open bidding, forward trading and swap, the Central Bank has signaled its intention to allow, gradually, the influence of market forces on RMB exchange rate.