Abstract:

Each country has its sovereignty to apply the exchange rate policy, which is widely used to adjust macro economy nowadays. In Japan and Korea, their governments had made their national currencies depreciated greatly so as to develop their economy at a high speed. The tendency of economic globalization, however, requires the international society to coordinate the exchange rate policy in order to stabilize world economy and promote international trade. The public opinion in favor of an appreciation of RMB indicates that the international coordination has extended from developed to developing countries. This is an important turning point. The existing coordination system of the international exchange rate policy has revealed its own limitations, and new international rules are required. The main trend of the international exchange rate policy is to set up an international organization and a general agreement for the exchange rate policy on the basis of equality.

Key words: international exchange rate, sovereignty, international coordination