Abstract: Three basic questions should be made clear beforehand in discussing how to remain a stable exchange rate of RMB.Firstly,is a stable exchange rate a strategic goal or is it simply a means?Secondly,is the present stable exchange rate caused by market or by administrative mechanism?Thirdly,is it advantageous to remain a stable exchange rate? Only when we fully understand these questions and analyze them sufficiently can we get a practical conclusion and step out of the misunderstandings in stabilizing the exchange rate of RMB.

Key words: the exchange rate of RMB, stable exchange, administrative mechanism