|
Date
|
Changes
to the exchange rate regime
|
Yuan per U.S. Dollar
|
| 1 March 1955 | Under a draconic currency reform, 10,000 Jen Min Piao became equal to one new Yuan and a fixed Official Rate against the U.S. Dollar was established. (WCY 1984, p.171) | 2.460 |
| 1969 | The Chinese currency was renamed the Renminbi, divided into 10 Tsjao and 100 Fyng. The old name, "Yuan", continued to be use. (WCY 1984, p.171) | |
| 15 August 1971 | With the floating of the U.S. Dollar, the Renminbi began to appreciate against the American unit. (WCY 1984, p.171) | |
| 23 December 1971 | Following the devaluation of the U.S. Dollar, Peking announced that the Renminbi's exchange value against the Hong Kong Dollar and Pound Sterling would remain unchanged, and that all trade transactions would be channeled via these two units. With the Renminbi's theoretical gold content unaltered, a new Official rate resulted. (WCY 1984, p.171) | 2.267 |
| April 1972 | Peking began to list an Effective Rate for the Renminbi against Greenback. (WCY 1984, p.171) | |
| 20 February 1973 | Following the devaluation of the American Dollar, the Official Rate was realigned. Subsequently, the currency's Effective Rate was realigned periodically. (WCY 1984, p.171) | 2.040 |
| 19 August 1974 | The Effective Rate was pegged to a trade-weighted basket of 15 currencies, the composition of which was undisclosed, and was fixed almost daily against that basket. (WCY 1986-1987, p.417) | |
| 31 December 1974 | The listed rate since would be the Effective Rate. | 1.840 |
| 31 December 1975 | | 1.970 |
| 31 December 1976 | | 1.880 |
| 31 December 1977 | | 1.730 |
| 31 December 1978 | | 1.580 |
| 31 December 1979 | | 1.500 |
| 5 January 1980 | The State Council issued a decree prohibiting the use of foreign exchange for making payments within China. (IMF 1981, p.111) | |
| 1 April 1980 | Foreign Exchange Certificates, or Waihui, equal in value to the Renminbi at Effective Rate, were put into circulation for use by nonresidents only. Issued in exchange for hard currency, the could be used for paying hotel bills, transportation fares and for purchases at the Friendship Stores. (WCY 1986-1987, p.417) | |
| 31 December 1980 | | 1.530 |
| 1 January 1981 | A multiple rate structure for the Renminbi was created with the introduction of a Foreign Trade Rate divided into two categories.
For internal settlements under the foreign exchange allotment quota, the rate is RMB¥2.80 per U.S. Dollar. (WCY 1984, p.171) This rate was formed by adding to the Effective Rate an " equalization price" for balancing export and import profits and losses, and applied to all national enterprises and corporations engaged in trade, as well as to receipts and expenditures in foreing exchange for trade-related transactions in invisibles, such as shipping and insurance. (IMF 1981, p.107)
An experimental trading system for foreign exchange has been established by the Bank of China in a few areas, such as Beijing, Guangdong, Hefei, Shanghai, and Tianjin. National enterprises holding foreign exchange earned through the system of retention quotas are permitted to sell this foreign exchange to other naional enterprises that have a quota for spending foreign exchange. (IMF 1982, p.120) For dealings under the foreign exchange retention scheme, the Bank of China acts as a broker, charging 0.1%-0.3%, resulting in a rate of RMB¥2.803-RMB¥2.808 per Greenback. (WCY 1984, p.171)
The Effective Rate was applicable to all other transactions. (WCY 1984, p.173) While the Official Rate was inoperative. (WCY 1984, p.175) | |
| 31 December 1981 | The Foreign Trade Rate was since fixed at 2.80. | 1.750 |
| 31 December 1982 | | 1.930 |
| 31 December 1983 | | 2.800 |
| 1 January 1985 | The internal settlement rate was abolished and all trade was governed by the Effective Rate. A foreign exchange retention quota also exists for a portion of export proceeds. (WCY 1986-1987, p.417) | |
| 20 November 1985 | Authorization was granted for Chinese residents to hold foreing exchange and open foreing exchange accounts and to deposit and withdraw funds in foreign exchange. (IMF 1986, p.171) | |
| 31 December 1985 | | 3.200 |
| 1 January 1986 | The trade-weighted basket of currencies was abandoned and the Effective Rate was placed on a controlled float based on developments in the balance of payments and in costs and exchange rates of China's major competitors. (WCY 1990-1993, p.416) | |
| 13 June 1986 | Shanghai International Trust and Investment Corporation was authorized to handle exchange business. (IMF 1987, p.154) | |
| 5 July 1986 | Since then, the rate of Renminbi against U.S. remained unchanged until 12-15-1989. | 3.720 |
| November 1986 | A Foreign Exchange Swap Rate was created, based on rates virtually agreed on between buyers and sellers and available at over 100 foreign exchange adjustment centers to foreign investment corporations and at first to Chinese enterprises in the four Special Economic Zones (Shantou, Shenzhen, Xiamen, znd Zhuhai, IMF 1988, p.148) but expanded in 1988 to all domestic entities authorized to retain foreign exchange earnings. (WCY 1988-1989, p.421) | |
| 31 December 1986 | The Foreign Exchange Swap Rate was 5.20. | 3.720 |
| 31 December 1987 | The Foreign Exchange Swap Rate was 5.90. | 3.720 |
| 1988 | Early this year, all domestic entities which are allowed to retain foreign exchange earnings were granted permission to trade in the adjustment centers, and by Octorber 1988, 80 adjustment centers were established. Initially, a relatively small volume of transactions took place inthese markets, but the volume has increased substantially since access to the centers was expanded. (IMF 1989, p.100) | |
| 31 December 1988 | The Foreign Exchange Swap Rate was 6.60. | 3.720 |
| 1 February 1989 | Regulations were issued governing the use of foreign exchange obtained in foreign exchange adjustment centers. Imports of inputs for the agricultural sector, textile, and for technologically advance and light industries were given priority. Purchases of foreign exchange for a wide range of consumer products were prohibited. (IMF 1990, p.104) | |
| 1 March 1989 | The SEAC issued regulations governing domestic sales in foreing currency by foreign investment corporations. Such corporations are permitted to sell in China for foreing exchange provided that the sales involve purchases under the Government's annual import plan, sales in Special Economic Zones and other promotional areas, and sales of import substitues. (IMF 1990, p.104) | |
| 15 December 1989 | The Renminbi was depreciated 21.2%. (IMF 1990, p.97) | 4.720 |
| 31 December 1989 | The Foreign Exchange Swap Rate was 5.40. | 3.720 |
| 17 November 1990 | The Renminbi was cut 9.6%. (WCY 1990-1993, p.416) | 5.220 |
| 31 December 1990 | The Foreign Exchange Swap Rate was 5.70. | 5.220 |
| 9 April 1991 | The management of the exchange rate was altered to a procedure under which the rate would be adjusted frequently in light of certain indicators including development in international exchange markets, relative price performance, and trends in export production costs. (IMF 1992, p.109) | 5.263 |
| 11 September 1991 | New regulations governing the use of official foreign exchange were introduced. Priority for using foreign exchange would be given to imports of agricultural inputs, interest and amortization payments and remittances, and imports of key construction projects and technology. The next priority level would include raw materials used for industrial production, certain spare parts, educational materials, and medicines. Items for which the use of official foreign exchange is strictly prohibited would include cigarettes, wine, clothes, shoes, small household appliances, soft drinks, and film. (IMF 1992, p.109) | |
| 1 October 1991 | Specialized banks other than the BOC and foreign banks that are engaged in foreign exchange business in Zhejiang and Jiangsu began to sell foreign exchange from export and service receipts directly to local branches of the PBC; these banks were allowed to purchase foreign exchange directly from the PBC to finance imports. The State Administration for Exchange Control would manage this part of the exchange reserves under the authorization of the PBC. (IMF 1992, p.109) | |
| December 1991 | Individual residents can buy and sell foreign exchange through authorized banks at rates established in the centers in conformity with the exchange control regulations. (IMF 1992, p.102) | |
| 31 December 1991 | The Foreign Exchange Swap Rate was 5.90. | 5.420 |
| April 1992 | Revised guidlines were issued specifying the priority uses of foreign exchange in foreing exchange adjustment centers for goods not covered by import licenses. Imports of inputs for the agricultural sector and central and local construction projects, and advanced equipment and technology, grain, and goods that meet daily needs are given priority. (IMF 1993, p.111) | |
| 31 January 1993 | The Foreign Exchange Swap Rate was 7.50. | 5.750 |
| 1 July 1993 | The exchange rate at which the state sold 30% of foreign exchange purchased from exporters to certain enterprises was changed from the Effective Rate to the prevailing swap market exchange rate. (IMF 1994, p.115) | |
| 31 December 1993 | The Foreign Exchange Swap Rate was 8.70. | 5.800 |
| 1 January 1994 | The Effective Exchange Rate and the swap market rate were unified at the prevailing swap market rate. (IMF 1995, p.114)
The PBC would announce a reference rate for the renminbi against the U.S. Dollar, the Hong Kong Dollar, and the Japanese Yen based on the weighted average price of foreign exchange transactions during the previouss day's trading. Daily movement of the exchange rate of the renminbi against the U.S. Dollar is limited ot 0.3% on either side of the reference rate as announced by the PBC. The buying and selling rates of the renminbi against the Hong Kong Dollar and the Japanese Yen may not deviate more than 1% on either side of the reference rate; in the case of other currencies, the deviations should not exceed 0.5% on either side of their respective reference rates. (IMF 1997, p.196)
Issuance of export retention quotas ceased except those for outstanding contracts. (IMF 1995, p.114) In addition, Foreign Exchange Certificates (FEC) ceased to be issued and those in circulation would be withdrawn gradually. (WCY 1990-1993, p.416) | |
| 1 April 1994 | The China Foreign Exchange Trade System (CFETS) in Shanghai (an integrated electronic system for interbank foreign exchange trading) came into operation. 22 cities were linked to this system by the end of 1994. (IMF 1995, p.114) | |
| 31 December 1994 | | 8.446 |
| 31 December 1995 | | 8.318 |
| 1 July 1996 | Foreign-funded banks were allowed to sell foreing exchange for bona fide transactions and become designated foreing exchange banks. (IMF 1997, p.203) | |
| 1 April 1997 | 12 branches of the PBC began to operate forward purchases and sales of renminbi against underlying transactions on a trial basis. (IMF 1998, p.218) | |
| 1 April 1999 | The longest maturity of forward purchase and sale of foreign exchange was extended to 6 from 4 months. (IMF 2000, p.218) | |
