RMB'S Unilateral Appreciation Should Reverse The US'S "Habit". China Should Be "Weak".

A senior US Treasury official said recently that if the recent fall of the renminbi implied that the Chinese government intended to abandon the RMB exchange rate market plan, it would cause serious concern in the United States. P

< /p >

< p > Chinese officials and experts and scholars have indicated that with the advance of China's exchange rate marketization reform, the two-way fluctuation of the RMB will become normal. The recent fluctuations are precisely the result of the market function, not the so-called "exchange manipulation" deviating from the market mechanism by the US officials, and the United States must be accustomed to the reverse of the RMB appreciation style.

< /p >

< p > in fact, from July 2005 to the end of 2013, the RMB has appreciated 35.7% against the US dollar.

Even in other countries, when the currencies depreciated sharply against the US dollar in 2008, the renminbi continued to appreciate.

Moreover, the two main reasons for the devaluation of the renminbi are: the market's concern about the domestic economic downturn and the increase in US withdrawal from QE and the increase in interest rates are all market factors rather than government intervention.

< /p >

< p > but unfortunately, the US government, especially the Wall Street, is unwilling to face up to this.

They accused the Chinese government of manipulating the exchange rate for "ten years as one day". Its real intention is to hope that the unilateral appreciation of the renminbi will bring the risk free arbitrage opportunities to Wall Street speculators, and at the same time, find an excuse for its trade deficit and low employment.

< /p >

Less than P, it is interesting to note that six months ago, the US Treasury also announced the international economic and exchange rate policy report on major trade targets, saying that the major US trading partners, including China, "did not manipulate the currency exchange rate to gain unfair trade advantages".

According to the report, in the first 9 months of 2013, the renminbi has appreciated by about 6.3% against the US dollar in nominal exchange rate.

In the main currencies covered by the report, the appreciation of RMB against the US dollar was the largest during this period.

< /p >

< p > "appreciation of the renminbi" means that there is no manipulation of currency, and depreciation means manipulation of "a href=" //www.sjfzxm.com/news/index_c.asp "> currency < /a >, while urging the marketization of the renminbi and the marketization of the renminbi, all of which show that the United States and Wall Street are guided by their own interests."

Galaxy Securities chief economist Zuo Xiaolei said.

< /p >

P has been debating for ten years on the issue of RMB exchange rate.

In fact, the United States counts the accusations made by the United States on some issues in China, whether it is RMB exchange rate or trade protection, human rights or strategic resources. The United States follows the "double standard" of "national interests first".

< /p >

< p > in fact, the United States is the largest currency manipulator in the world.

The United States has been manipulating the dollar exchange rate indirectly. For example, it often releases information to the market through fraudulent investment bank reports and expert research results, so that the US dollar appreciates or depreciates.

< /p >

The exchange rate of P is the comparison of the two currencies, which is actually a comparison of the two countries' economic strength.

Yu Yongding, a member of the Chinese Academy of Social Sciences, believes that under the current international situation, the United States has been much less concerned about the RMB exchange rate than it used to be. It does not have to overlook the American factors and disturb the pace and pace of the reform of its exchange market, and not to pay much attention to the so-called "serious concerns" expressed by the American officials.

< /p >

Experts and scholars interviewed here at P > said that the trend of unilateral appreciation of RMB has changed.

For the United States, it is necessary to break the expectation of unilateral appreciation of the RMB. If it remains in the old mindset, Wall Street investors will pay the price.

< /p >

< p > at present, when RMB < a href= "//www.sjfzxm.com/news/index_c.asp" > /a > fluctuation, how to maintain the stability of exchange rate in order to restrain the international speculative capital from arbitrage arbitrage affects China's financial stability; how to adjust the financial strategy to prevent risks and how to develop various financial instruments to avoid the risk of foreign exchange risk in order to reduce the economic impact on the country under the condition of increasing exchange rate fluctuations?

< /p >

"P >" since 1994, the first a href= "//www.sjfzxm.com/news/index_c.asp" > foreign exchange reform < /a > has been unofficially linked to the US dollar. So far, China has experienced several exchange rate changes.

In the past ten years, the RMB exchange rate reform has witnessed the global financial crisis, the ups and downs of emerging markets and the hardships of the Chinese economy in seeking pformation.

Increasing the two-way fluctuation of RMB is a necessary condition for China to improve the marketization of exchange rate.

< /p >

< p > the goal of China's exchange rate reform is to establish a managed floating exchange rate system based on market supply and demand so as to maintain the basic stability of the RMB exchange rate on a reasonable basis.

< /p >

< p > this year's government work report put forward that we should keep the RMB exchange rate basically stable at a reasonable and balanced level, expand the two-way floating rate of exchange rate, and promote RMB capital account convertibility.

The central bank also said that the future will "basically withdraw from normal foreign exchange intervention", which means that unless the exchange rate fluctuates, the market supply and demand forces will determine the exchange rate fluctuations and the equilibrium level.

< /p >

< p > experts predict that there will be more two-way fluctuations in the future China's exchange rate market, and a good economic face and a large spread will determine the RMB exchange rate will not fall into the devaluation channel one way.

According to the latest data from China foreign exchange trading center, the central parity of RMB against the US dollar in April 9th was 6.1490, up 37 basis points from the previous trading day.

< /p >

Less than P, the more important thing is that the rise or fall of the renminbi is a normal phenomenon in the market economy.

The unilateral appreciation of the renminbi has been reversed. For this reason, China should remain clear headed and gradually push forward the reform of the exchange market and financial system in accordance with the established timetable, while the United States should accept the fact and guide investors in accordance with the laws of the market at the same time of introspection.

< /p >