Focusing on Currency Mismatch Risk in the Reform of Exchange Rate Institution

Currency mismatch risks theory pays attention to the impact of fluctuation of foreign exchange to a country's economy for a stable run. For all countries of those its own currency is not the key currency in the country will be exposed to currency mismatch risks as the world economy is being deeply integrated. China is such a country been exposed to currency mismatch risks. The clear trend to have the exchange rate institution reformed will definitely lead to more exposure opportunities to the currency mismatch risks for China. When making guidance principles and decisions for the exchange rate institution reform, currency mismatch risk can not be ignored and special attention and emphasis should be paid on it.