RMB Exchange Rate "Small Step Away"

April 21st RMB Once again, the dollar exchange rate has reached a new high since the exchange rate reform. The RMB exchange rate accelerated appreciation and elasticity increased further.

China's foreign exchange trading center data show that in April 21st, the central parity of RMB against the US dollar was 6.5228, a 74 basis point increase over the previous trading day, which once again raised the new RMB exchange rate since the currency reform just a day ago.

Data show that since April, the central parity of RMB exchange rate has emerged. Accelerated appreciation Situation. In the past 13 trading days of the month, the appreciation rate of RMB against the US dollar was close to 0.5%, while in the first quarter of last year, the RMB appreciated against the US dollar by 1.3%. In 2010, the RMB appreciated by 3.1% against the US dollar.

Market participants believe that the recent rise of the RMB against the US dollar is closely related to the weakening of the US dollar index. Since the beginning of this year, the US dollar index has changed rapidly from 82 to 73, and the US dollar is weakening.

With regard to the pattern of RMB exchange rate rising rapidly and increasing elastically in recent years, analysts believe that a slight appreciation of the RMB may become another important monetary policy tool against inflation in the context of inflation becoming the main contradiction of China's current economic situation.

"Taking into account the current price rise Imported inflation The RMB will probably regain its trend before 2008, and the exchange rate elasticity will increase and the appreciation rate will accelerate. The RMB exchange rate will appreciate 5% to 7% in the year. Tang Jianwei, a macroeconomic analyst at Bank of Communications (601328) thinks.

In the central bank's many monetary policy tools, exchange rate instruments and interest rate tools belong to price instruments. As a country's exchange rate rises will play a significant role in hedging the price of imported products, the appreciation of the exchange rate will have a positive effect on slowing import inflation.

Historically, China has also used exchange rate instruments to hedge against imported inflation.

Central bank officials recently also discussed the exchange rate policy against inflation. Hu Xiaolian, vice governor of the central bank, said on Friday at the 2011 economic and trade situation conference that we should continue to improve the RMB exchange rate formation mechanism in accordance with the principle of initiative, controllability and gradualism, enhance exchange rate flexibility and ease the pressure of imported inflation.