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The Central Parity Of RMB Against The US Dollar Has Dropped &Nbsp, And Each Step Back Is The Best Policy.

2010/9/27 15:00:00 36

RMB Appreciation And US Dollar Exchange Rate

China

foreign exchange

The trading center announced in September 27th that the central parity of the US dollar against the RMB was 6.7098.

Back to the 6.70 pass, it dropped 101 basis points over 21 days (6.6997).

This is the first time in September 10th that the central parity of RMB against the US dollar has reached 8 consecutive trading days in 2005, and the first decline since the new high exchange rate in 2005.

although

RMB

There has been a significant appreciation recently, but the US continues to pay RMB.

exchange rate

Bring pressure on.

President Obama said last week that China should let the renminbi grow according to its own economic growth.

appreciation

To establish a fairer trade relationship between China and the US, and American enterprises will also benefit from it.

In addition, the US House of Representatives passed the bill on punitive tariffs on the RMB exchange rate, and it is expected that the house of representatives will vote as early as next week.

According to the bill, if the value of a country's currency is considered to be artificially underestimated, the US government has the right to impose punitive tariffs on goods from that country.

The war around the exchange rate is spreading because of the sluggish growth of the global economy.

The US economy has not yet recovered rapidly, and many American businesses and politicians have criticized China for causing us job losses.

Trade disputes between the two countries may intensify and may even lead to retaliatory acts.

The United States seems to criticize China for no reason.

US trade with China in July

Deficit

It reached 25 billion 900 million dollars, more than half of the US trade deficit in that month.

After the outbreak of the global financial crisis in 2008, the RMB exchange rate was basically frozen, until only a few weeks later, it began to appreciate slightly.

And China seems to have good reasons.

Chinese Premier Wen Jiabao pointed out that the renminbi does not have the basis for substantial appreciation.

He stressed that China will continue to implement the RMB exchange rate reform mechanism, and the RMB exchange rate can not solve the problem of Sino US trade imbalance.

If some US Congressmen have raised the value of RMB 20-40%, I do not know how many Chinese workers will lose their jobs, and there will be new turbulence in Chinese society.

When China and the United States are wrestling, other countries are also affected.

The Fed's implication is that it will expand the supply of money.

dollar

Exchange rate.

The current weakening of the US dollar against the euro has affected the export competitiveness of the euro zone, and the euro zone and its peripheral economies are in urgent need of economic momentum.

Other Asian currencies, such as Malaysia's ringgit, are stronger against the US dollar and the renminbi.

The people's Bank of China authorized the China foreign exchange trading center to announce that the RMB exchange rate in the interbank foreign exchange market in September 27, 2010 was RMB 1 yuan to RMB 6.7098 yuan, 1 euro to RMB 9.0415 yuan, 100 yen to RMB 7.9590 yuan, 1 Hong Kong dollar to RMB 0.86497 yuan, 1 pounds to RMB 10.6193 yuan, and RMB 1 yuan to 1 ringgit.

Now countries need to compromise with each other. China should allow further appreciation of the renminbi, which will help the Chinese economy grow more evenly. The United States should also be patient because the dollar exchange rate is also low. The huge US trade deficit can not be entirely attributed to the RMB exchange rate. The euro and yen exchange rate is not low, and Americans are not buying European and Japanese cars as well.