Ding Zhijie: RMB Strength Is Not Simply A Unilateral Appreciation.

2011/8/20 9:58:00 33

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Ding Zhijie'S Unilateral Appreciation Of RMB

August 19th, external

Economics

Ding Zhijie, Dean of the school of finance at the University of Commerce, said in an article published in the people's Daily that the RMB exchange rate for various currencies has rarely seen a "rising" phenomenon recently, indicating that our existing exchange rate formation mechanism has greater flexibility, which can reflect changes in the economic fundamentals in a timely manner and accommodate shocks from abroad.

He said that in the medium to long term, the renminbi is a strong currency.

From the international perspective, the economic recovery of developed countries

Slow down

With the growth slowing down, the sovereign debt problem is hard to solve in the short term, and monetary policy has to remain relatively relaxed.

From the domestic perspective, China's economy continues to maintain steady and rapid growth. Macroeconomic regulation and control is the primary task of curbing inflation. The balance of payments adjustment tends to be balanced, but it will not turn to deficit. The comprehensive national strength and international economic status will continue to improve.

These economic fundamentals will support the strengthening of the renminbi.

But he said that a strong currency could not be understood simply as a unilateral appreciation.

With the exchange rate adjustment in place, the RMB exchange rate will show two-way fluctuations, and the market supply and demand relations and mechanisms play a fundamental role.

If the dollar depreciates in the international foreign exchange market, it will not rule out the RMB against the US dollar exchange rate.

depreciation

The possibility.