The Rise Of The Renminbi And The US Dollar Will Become The Norm.

In recent years, the renminbi and the US dollar have combined appreciation.

The US dollar index has rebounded to the 82.72 line from a 78.90 year low in May, as the United States' latest economic data is better.

The spot exchange rate of the renminbi also rose during the period, and the spot rate of RMB against the US dollar fell to 6.1366 from the original 6.2250 front-line price.

Under the international monetary system dominated by credit money, the exchange rate as a game between the interests of a country and another country, its change is not entirely determined by the supply and demand relationship shown by the market, but depends on the interest game between countries and the maximization of national interests.

Whether the RMB exchange rate depreciates or appreciates, it should be the central bank's overall consideration of national interests.

On the formation of RMB exchange rate

Of

Despite its many connotations, the most important thing is to change the trend of unilateral appreciation or unilateral depreciation, and let the RMB exchange rate fluctuate.

If the RMB exchange rate fluctuates continuously, there is no price mechanism.

Therefore, since the beginning of this year, the central bank has actively promoted the depreciation of the RMB exchange rate, which is the first step to guide the fluctuation of the RMB exchange rate.

Therefore, the renminbi

The trend of "seesaw" between us dollar and US dollar is not surprising.

The continuous inflow of external capital since July has also largely stabilized the confidence of the parties in making more Renminbi.

Although the latest economic indicators indicate that China's economic growth prospects do not seem to be very clear, the market continues to have strong confidence in the continuation of the recovery under the policy stimulus.

This also makes the RMB exchange rate or the trend of strong trend in the short run.

The latest monitoring data from EPFR showed that global capital continued to flow into mainland China and Hongkong in August 14th and August 20th. The funds in the stock market and the A share amounted to 1 billion 400 million US dollars, 2.6 times the previous week.

The capital flow monitoring data show that the trend of continued hot money overseas is continuing since July.