Restructuring Hainan's International Trade and Finance: Currency, Foreign Exchange, and Trade.

摘要

The Note considers the possible development of an independent, convertible currency and other foreign exchange and trade policies that contribute to Hainan's goals of close interaction and integration with China's economy and with the international economy. The study considers how a convertible currency for Hainan could be established, and how the ensuring exchange rate would be determined. The study then addresses the question of whether a rapid or gradual path toward convertibility is preferable, and suggests how a fairly rapid process of moving toward convertibility might be accomplished within a period of about one year. Brief consideration is given to the question of a Free Trade Island, a Free Trade Zone, or Special Customs Zone status for Hainan, and some of the advantages and disadvantages of each are discussed. Finally, the Note addresses the issue of policies for attracting foreign investment to Hainan.