Six months after the reform, most of the Chinese enterprises have adapted smoothly to the reform after undertaking painful restructuring, however a few sectors suffered severely from the exchange rate adjustment. On such a count, we may conclude that the market force could be allowed gradually to play a greater role in the floating exchange rate. 9.
Over the past eight months, great efforts have been made by China to cultivate and develop foreign exchange markets. Trading products were enriched in the market, risk hedging instruments like forward and swap were developed, market makers and OTC transactions were introduced in the interbank foreign exchange market.