ＲＭＢ Ｅｘｃｈａｎｇｅ Ｒａｔｅ Ｒｅｆｏｒｍ：Ｐａｓｔ ａｎｄ Ｆｕｔｕｒｅ

With the deepening of China'sfinancial reform，economicdevelopment and the enforce-ment of market roles，the RMBexchange rate needs to become morn flexibleand become a more sensitive reflection of thechanges in market supply and demand.Undersuch circumstances，on July 21，the People'sBank of China announced that the previoussystem where China's RMB was pegged tothe U.S.Dollar would be changed to include abasket of foreign currencies，shifting China'sexchange rate system into a managed floatingexchange rate regime based on market supplyand demand.