China's road to exchange rate liberalization

Document Type

Book chapter

Source Publication

China in the post-Deng era

Publication Date


First Page


Last Page



Chinese University Press


When Deng Xiaoping decided to open up China’s economy in 1978, he and other Chinese leaders were already aware of the need to introduce a greater degree of convertibility for its currency. They decided to achieve this in stages, first by inventing new, more convertible alternatives to the RMB. This is the multitrack system that lasted right through 1 January 1994. Section II will look at this history and assess the legacy of this policy. Starting on 1 January 1994, China proceeds to bring about a higher degree of convertibility “at the intensive margin”—i.e., convertibility of the unified RMB. Section III will assess China’s success in this endeavour. In Section IV I shall look at the risks and difficulties confronting China through the turn of the country. Finally, Section IV will conclude the Chapter with some brief comments.

Publisher Statement

Copyright © The Chinese University of Hong Kong 1998. Access to external full text or publisher's version may require subscription.

Additional Information

ISBN of the source publication: 9622017924



Recommended Citation

Ho, L. S. (1998). China's road to exchange rate liberalization. In J. Y. S. Cheng (Ed.), China in the post-Deng era (pp. 453-470). Hong Kong: Chinese University Press.

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