The calculating results show that KLR foreign exchange market pressure index was beyond the lowest warning level more than five times in 2007 due to the frequently changing in interest rates,the higher inflation rate and the appreciation trend of RMB;banking institutions are in the security status after measurements taken by the government to improve the operational effectiveness in these years.

An Analysis of the Effect of the Monetary Policy of China under the Exchange Market Pressure

Then based on a review of international experiences in the researches on the monetary crisis, with reference to EMS model and precaution method, it calculates the indices of China s foreign exchange market pressure to examine the fragility of China s financial market and the flexibility of monetary policy.

Forecasting foreign exchange market based on fractal theory;

The Cointegration Test of the Foreign Exchange Market Efficiency;

Concentration and Dispersion of the Supply in China s Foreign Exchange Market;

Actively participate in market trading,contribute to FX market prosperity;

FX market develops further;external evaluation system coming into being;

USD bottoms out amid policy switch Prospects and review of the international FX market in the first half of 2004;

So in order to speed up the marketization of exchange rate,our government should set the exchange market growth as a continual goal so that the marketization of exchange rate could run in a benign circle.

Our positive analysis shows that: in the exchange market of China, the noise level is too low to be efficient.