Support the rapid growth of China's economy strong performance of the RMB

Than-expected growth and the trade surplus rose strongly promote exports, a stronger yuan

August 11, the central parity of RMB against the U.S. dollar reported 6.3991, for the first time rose above 6.4 mark, setting a new high since the exchange reform.

"The recent pace of yuan appreciation has accelerated, mainly the result of market forces." Foreign Trade University, said Ding Zhijie, Dean of Finance recently released data show that China's trade surplus in July reached $ 31.484 billion, since February 2009 highest, July exports reached 175.13 billion U.S. dollars, monthly export volumes last month, breaking a record of $ 161.97 billion just the historical record. "surplus-expected growth and exports rose strongly in the foreign exchange market, foreign exchange sufficient performance for greater than demand, thus promoting a stronger exchange rate. "

According to the Chinese foreign exchange market traders introduced, reaching a high of 30 months after the publication of trade surplus, the sudden increase in dollar selling overwhelmed the banks. "Exports so well, the dollar is to go soft, not fool anyone , of course, to sell dollars. "he said.

From a longer period of time to see the major slowdown in economic recovery in developed economies, the recent European and American sovereign debt crisis has worsened the situation, the Chinese economy maintained a rapid growth, in contrast to the fundamentals support a strong yuan.

China's RMB exchange rate strengthened the overall positive economic impact

Will not pose a big impact on exports, the nominal effective exchange rate remained stable or even slightly depreciated

Experts believe that China's RMB exchange rate strengthened the overall positive economic impact, will help control inflation in the short term, long-term benefit transfer methods.

China's current rapid growth of imports, imports of goods in many iron ore, crude oil and other commodities over the past period of time, prices of imported goods to become China's inflation pressure to increase one of the factors. "Exchange rate is not special treatment of inflation tools, but the exchange rate appreciation of the objective to reduce the price of imported goods in China will help ease imported inflationary pressures, "said Ding Zhijie.

Lian Ping, chief economist at Bank believes that the RMB exchange rate flexibility will be enhanced to promote the coastal export industries to upgrade technology, innovative products to central and western regions; while the export sector to direct resources from the domestic service sectors such as configuration, reducing the economy's export over-reliance. "These all contribute to industrial upgrading and structural optimization, transformation of economic development." Lian Ping said.

Strength of the RMB exchange rate will not affect the export business operators? Ding Zhijie that the yuan is breaking 6.4 mark export, trade surplus and so the result of market forces, which in itself shows the international competitiveness of Chinese products is strong, so strong RMB exchange rate will not pose a big impact on exports.

In fact, despite last year's central bank announced on June 19 to further promote the RMB exchange rate formation mechanism reform, the RMB has appreciated 6.7% against the U.S. dollar, but because of the RMB against the yen, euro, British pound and others have varying degrees of depreciation, thus reflecting the RMB exchange rate the overall level of nominal effective exchange rate remained stable or even slightly devalued.

For the people, the stronger exchange rate, which means your hand is more valuable yuan, in foreign travel, consumption, when studying more cost-effective.

The overall strength of the future will continue

Will show a two-way fluctuation, flexibility enhanced features,Phased devaluation is possible

The next stage of the RMB will continue to be strong? Experts believe that the current caused by the downgrade of U.S. debt debt problems continue to ferment in Europe and America, loose monetary policy in developed countries will remain a long time, does not exclude the United States to launch a new round of quantitative easing policy, the possibility of such a result, the depreciation of major currencies may , Overall, the RMB in the foreign exchange market will continue strong position.

Ding Zhijie, but also admitted that although the dollar weaken in the medium term trend was, but the unresolved issues as the European debt capital for hedge considerations are likely to push the dollar even stage a strong rebound rebound, so the next stage of the renminbi devaluation is possible In short, the present two-way fluctuation, flexibility enhanced features.

This articlepublished in published in the:China Trade Information (http://en.zgxu.com),visit the above web site.