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Propose a more comprehensive explanation on the determinants and fluctuations of China’s exchange rate policy in the past decade (2005–2015).

Case study on China’s exchange rate policies in three respective stages since 2005 and then a comparative study on these three stages.

Put forward a two-pronged explanation on the determinants and fluctuations of China’s exchange rate policy in the past decade and arrive at three specific conclusions. First, external pressure is only one factor among many influencing the formation of China’s national interests (Guojia Liyi in Chinese) and the decision-making process on exchange rate policy. Second, national interest is the fundamental driving force and substratum for making China’s exchange rate policy. Third, in the short term, the specific exchange rate policies in different periods were not always in accordance to the national interests (or Guojia Liyi), due to the influences of some factors on the decision-making environment.

The comprehensive view is conducive to better explaining the formation and fluctuations of China’s exchange rate policy and consequently contributes to understanding and even predicting future policies.