Backgrounder: RMB exchange rate formation mechanism reform Events

-- Beijing on April 10 (Xinhua both Yao-HAN Jie) yuan against the U.S. dollar price on April 10 the first time "cracking 7", to 6.9920 yuan to the dollar. In recent years China's RMB exchange rate formation mechanism reform event are as follows:

July 21, 2005, launch of China's RMB exchange rate formation mechanism reform. Implemented based on market supply and demand, with reference to a basket of currencies conditioning, a managed floating exchange rate system
Degrees. RMB exchange rate will no longer be pegged to the U.S. dollar and a more flexible RMB exchange rate mechanism. At 19:00 on July 21, the RMB exchange rate against the U.S. dollar one-time price increase 2 percent, to 8.11 yuan to the dollar, as the interbank foreign exchange market the next day on foreign exchange transactions between the bank price.

September 23, 2005, the People's Bank of China decided, with immediate effect to expand China's inter-bank spot foreign exchange market in non-US dollar currencies against RMB trading price of the floating range, from top to bottom from the original 1.5 percent extended to plus or minus 3 percent, a modest expansion of banks Dollar exchange rate, listing the rate spread, and cancel the bank, listed on the non-dollar currencies limit the rate of spread.
January 3, 2006, the People's Bank of China announced that since January 4 at the inter-bank spot foreign exchange market on the introduction of Inquiry transactions, while retaining the auspices of ways. The interbank foreign exchange market transactions can choose to focus on the main credit, bid on the way transactions, also may choose to bilateral credit, clearing the way for bilateral Request transactions. At the same time in the interbank foreign exchange market introduction of market maker system, provide liquidity to the market.

May 15, 2006, the RMB exchange rate against the dollar break through 8.0 juncture, to 7.9982 yuan to the dollar.

January 15, 2007, the RMB exchange rate price of HK first break 1:1, 0.99945 yuan against one Hong Kong dollar.

May 18, 2007, the People's Bank of China announced that since May 21, 2007, the inter-bank spot foreign exchange market trading price of RMB against the U.S. dollar floating rate by three thousandths extended to five thousandths.