>On June 19th，2010，the People’s Bank of China has announced that the mechanism of RMB exchange rate formation will be further promoted on the basis of exchange rate reform of 2005.The current international and domestic financial environments create a great opportunity for restarting the exchange rate reform，and pressures both from internal and external accelerating the marketization of RMB exchange rate formation mechanism are increased.As level of RMB exchange rate does not fully reflect the changes of supply-demand relationship，determinations of currency basket and weight are complicated，and the rate of currency volatility which has been fixed makes the market’s self-adjusting function disabled.The market reform of RMB exchange rate formation mechanism will be deepened by strengthening the flexibility of exchange rate，promoting market-oriented interest rate reform，enriching the exchange rate risk management tools，and so on.