On November 10, the central parity of RMB against the US dollar was raised by 226 points from the previous day to 6.5897, and the central parity rose to the highest point since June 27, 2018.
Since the beginning of this year, the renminbi exchange rate trend has declined first and then increased. The RMB exchange rate declined at the beginning of the year and once closed at 7.1455 at the end of May, and then began to rise. As of now, the RMB exchange rate against the US dollar has appreciated by nearly 8% from the low point at the end of May.
This round of renminbi exchange rate rise has attracted the attention of industry experts. Based on the opinions of experts, the thrust of this round of RMB exchange rate rise mainly comes from two aspects:
On the one hand, China’s economy and China’s international trade performed better than expected;
On the other hand, the performance of the monetary and fiscal policies of other major economies caused turmoil in the international financial market.
In the opinion of experts, the current round of RMB exchange rate appreciation has a solid foundation, and almost all factors affecting the exchange rate have benefited the RMB.
China's economy has taken the lead in recovering from the impact of the new crown pneumonia epidemic. Imports and exports and the current account of the balance of payments have achieved surpluses, which are the fundamental factors for the rise of the RMB exchange rate.
