Since the beginning of the year, more than half of official and independent research institutions on the reform of the Renminbi exchange rate mechanism behind closed doors, and form the policy recommendations submitted to the Bank or Government decision-makers. To the country convened two conferences have multiple indications, the international financial crisis since the break of the reform process is about RMB intertextile. The appreciation of the Renminbi or not, once again, touch sensitive nerves in the market. March 6, Zhou xiaochuan, Governor of the people in the 11th National People’s Congress during the third session of the Christian Louboutin Shoes press conference, would not preclude some special stages, such as the Asian financial crisis and the global financial crisis, on the occasion of special policies, including in particular the exchange rate mechanism. The so-called exchange rate mechanism, in particular, refers to the July 2008 global financial crisis, the RMB interrupted since July 2005 of a basket of currencies, the managed floating exchange rate regime. The actual fixed since RMB.
The US dollar and RMB exchange rate have ups and downs. According to the Bank for International Settlements estimates that the year 2009, the devaluation of the real effective exchange rate of RMB 6.1%. 2010-1-RMB real effective exchange rate index, 113.89 December 2009 devaluation 1.05% again. In July 2005 after a period of three years after, the appreciation of the Renminbi against the US dollar continued up to 21%. Although Zhou xiaochuan reiterated that the Chinese Government will maintain the basic stability of the RMB exchange rate, but the aforementioned Wedding Shoes attitude also predicts that the Central Bank sooner or later will exit this very period of “great.” On the same day, the Central Bank Deputy Governor Su Ning in reply to Dow Jones news service reporter Zhou xiaochuan relevant remarks, said that the Central Bank will decide in accordance with the economic situation, in particular, the exchange rate mechanism of the “quit”.
The exit has been interpreted as a return to market appreciation in the channel. Every other week, RMB will in the near future may be one-time revaluation 2%-3% of the messages that circulate on the market. “Some institutions have begun dismantling into dollars.” Hong Kong finance said. On this approach. The export sector of Frank straightforward: in a world economic recovery was faltering start pushing the strong appreciation of the renminbi is forced to brake. Some scholars have suggested that if you are installing from a purely market-orientation, the present point in time the renminbi is to appreciate or depreciate, in fact, impossible to measure, rather than blindly to action. If continued appreciation of the Renminbi exchange rate regime result expected is “hot money” inflows would become even worse, for fear of the spread of the liquidity, it may push up the asset bubble, 2005 after the reform. There is also a point of view, the Renminbi exchange rate is adjusted early in the Louboutin Sale initiative, and drag the passive. Temporarily regardless of the pressure from abroad, even if further renewed the reform to the appreciation of the Renminbi, also have inherent rationality. China’s economic rise, and exports stabilised lead has ushered in a relatively fast growth; more importantly, an effective exchange rate mechanism, to not only import and reasonable pricing, improved terms of trade, China is more likely to bring trade in commodities and non-tradable goods prices of normalization, which in turn changes the internal labor, land resources, and other elements of the price of distorted State, improving people’s consumption level overall increase national well-being.
In the face of the dollar is a small step to ease up or one-off, a reduction of 2%-3% or two-digit rates of controversy, “the key is the Renminbi needed to form the market exchange rate mechanism, instead of the exchange rate adjustment in place. What is in place? “is our Chief Economist, National Institute of Peking University Professor Huang Yi-development. Nobel Prize winner, American economist Paul Krugman (Paul Krugman) or even claimed that Christian Louboutin Sale other countries should play a game of China’s “trade war”. After the crisis, the world trade in Europe and the weak domestic demand, rising unemployment, the need to find solutions. At this point, has not yet completed the marketing of the Renminbi exchange rate mechanism will become the target of public criticism. Citigroup greater China Chief Economist Shen minggao to interview said that China and the world is so closely linked, the RMB exchange rate have become part of the global price, so the pressure also came naturally. “On the direction of RMB, and before and after the crisis has not changed, it will be appreciated. More precisely, now we are talking about is actually an RMB revaluation relative to the dollar.
RMB to U.S. underestimated 41%, American think tanks of the Peterson Institute for international economics this “research” and well known. The Institute senior fellow at Radi to interview alleged that trade-weighted exchange rate probably underestimated the 25% or even 30%. Since the beginning of this year, Sino-US trade friction. The US has on imports from China of Silicon metal, the US-China woven blankets, narrow straps, seamless tubes, coated paper to anti-dumping, countervailing or anti preliminary, and imports from China of drill pipe launched the double. Obviously, neither side trade wars, not in the interests of both sides. Rams at the tire-United states, the United States White House think tank the U.S. economy Institute of strategic studies of the founder and Director of the Clyde Katowice Christian Louboutin Boots with respect to the interview, to avoid trade disputes with the important point is to allow the appreciation of the Renminbi, “China by keeping the lower exchange rate for all export subsidies, Obama also tend to protectionism.
The US dollar and RMB exchange rate have ups and downs