Notice of RetractionStudy on the effect of foreign exchange sterilization under the background of expectation of RMB appreciation

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Under the background of China´s long-term double surpluses of BOP, RMB has been expected to have the trends of appreciation. To prevent RMB appreciating very quickly, the central bank of China has to intervene the foreign exchange market, and thus has launched more currency into the market. Foreign exchange sterilization is the way that the central has to do. The means of central bank´s foreign exchange sterilization includes recycling loan, open market operations, rediscount, issuing central bank bills and raising the deposit reserve ratio act. At the start, the front means works basic basically well, but facing the increasing currency caused by foreign reservation, foreign exchange sterilization cannot solve it effectively. China needs to solve the currency caused by foreign reservation from the source.