Current Situation, Problems and Countermeasures Analysis of China's Foreign Exchange Market

China, as the second-largest economy in the world, plays a vital role in the development of FX market. In recent years, China's FX market has been expanding continuously, liquidity has been enhanced, and the exchange rate mechanism has been perfected. However, there are still some problems in the market, such as preventing and controlling the market risk, the irrational structure of participants, and so on. To solve these problems, it is necessary to deepen the opening-up of the financial market, perfect the mechanism of the formation of the exchange rate, enhance the risk prevention and control, optimize the structure of the market participants, and enhance the infrastructure of the foreign exchange market. Therefore, the study of this thesis is of great importance, and it can offer some help to the problems which should be resolved in FX market. This article will analyse the current situation of Chinese FX market, the four existing problems and the corresponding countermeasures. This article discusses some problems in the foreign exchange market: China's FX market has been severely influenced by the increase of interest rate, while China has been in a disadvantageous position in the field of FX operations, the size of assets and the establishment of institutions. The types of FX derivatives in China are less, and the participants in the FX market are unitary, and the investors' acceptance is low.