rate policy has been sustainable like Europe’s exchange rate policy in the early 20th century and Japan’s exchange rate policy after World War II. Recently, Economic purposes such as restoring slowdown of economy due to financial crisis and recovery of trade deficit are combined with political purpose and retaliatory currency manipulation in china and U.S. is on the rise. Extreme fluctuations
exchange rate system, a floating exchange rate system and the limited floating exchange rate system depending on flexibility and a functional pattern of exchange rate.
• Fixed exchange rate system: A system that fixes one’s currency in a particular foreign currency at the certain level of system
• Flexible exchange rate system: A system that permits free fluctuation of the e
DEFINITION
A system that is in a middle of fixed and flexible. It limited the range of exchange ratefluctuation about certain currency within certain range(1~2.25%).
The fixed exchange rate system ( 1945. 10 ~ 1964. 5 )
The unitary fluctuation foreign exchange system ( 1964. 5 ~ 1980. 2 )
The multicurrency basket system ( 1980. 2 ~ 1990. 2 )
Average exchange rate system ( 1990. 3 ~
Ⅱ. Effects of RMB appreciation on China
□ Exchange rate system of China
- The Chinese exchange rate system is the fixed exchange rate system which is fixed to the dollar. In 1994 January 1, China unified the official exchange rate and the market exchange rate and adopted a managed floating exchange rate system that restricted one day exchange ratefluctuation band with ±0.3% of the precedi
crisis in 1999. Brazil, Argentina, and Colombia are countries that underwent economic crisis most
frequently
from
1980.
In
1992,
Brazil’s
inflation
rate
reached
1.175%.
Moreover
Brazil
was
supported by IMF bailout in 1998.
The range of fluctuation of the foreign exchange rate in Brazil real shows dramatic movement.
LG Business report targeting B