< p > in the first quarter of this year, the spot exchange rate of RMB against the US dollar slipped from 6.0539 (December 31, 2013) to 6.2180, down 1641 basis points, and the depreciation rate was 2.64%.

The depreciation rate of 2.64% is close to the appreciation rate of RMB's spot exchange rate of 2.9% last year.

This is the biggest and longest cycle of RMB exchange rate depreciation since the reform.

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< p > obviously, in the short term, the reversal of the trend of RMB a href= "//m.pmae.cn/news/index_c.asp" > /a > trend is undoubtedly the most shocking event in the financial market this year. This reversal not only changed the one-way anticipation of the market, but also made the real economy, especially the foreign trade enterprises, have to pay more attention to rainy days.

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"P >, from a substantial appreciation to a substantial depreciation, has made the two-way fluctuation of RMB change from expectation to fact. Although this is not the end of the reformed blockbuster, it is the most exciting climax of the whole story, which has led to the" goal "and the ultimate outcome of the reformed" blockbuster ": an important step towards the formation of the people's currency exchange rate market.

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This year, the RMB exchange rate trend began to decline. In January 14th, the renminbi began to reverse against the US dollar spot exchange rate closing price and entered a rare a href= "//m.pmae.cn/news/index_c.asp" > depreciation /a channel. The depreciation rate was close to 3%, hitting a new low of nearly ten months.

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< p > in the face of market changes, in March 15th, the central bank assessed the situation and decisively announced that since March 17, 2014, the floating rate of RMB against the US dollar in the inter-bank spot foreign exchange market has expanded from 1% to 2%.

This is the third expansion of the floating rate of the RMB against the US dollar since the reform of the RMB exchange rate system in July 2005.

(in May 21, 2007, the floating rate of the RMB exchange rate expanded from 0.3% to 0.5%, and from 0.5% to 1% in April 14, 2012), but compared with the previous 5 year expansion, the trading range of the RMB against the US dollar traded from 1% to 2%, only for less than 2 years.

Obviously, in the face of the new situation, the central bank intends to accelerate the process of RMB remittance.

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As for the central bank's launch, as market analysts pointed out, the expansion of exchange rate floating rate reflects the marketization orientation of exchange rate reform, indicating that the RMB exchange rate formation mechanism has taken an important step along the market orientation. This is a substantive step in the reform of the exchange rate formation mechanism, and highlights the determination of financial reform. P

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< p > in fact, since the reform of RMB a href= "//m.pmae.cn/news/index_c.asp" > exchange rate system < /a > started in July 2005, the central bank always adheres to the direction of market-oriented and gradual reform, actively and steadily promotes the marketization of exchange rate, and at the same time, pays attention to controlling the timing, intensity and rhythm of the reform so as to prevent the impact of the fluctuation of the exchange rate on the economic operation, and ultimately build an effective exchange rate mechanism that truly reflects the changes in market supply and demand.

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< p > will widening the fluctuation of exchange rate cause the RMB exchange rate to descend sharply? This worry is not necessary.

Because the RMB exchange rate does not exist on the basis of substantial appreciation or depreciation.

In the medium to long term, China's economy will generally stabilise and the world's economic recovery will be conducive to the recovery of export trade and provide strong backing for the RMB exchange rate.

From the perspective of policy needs, RMB internationalization and capital account liberalization need to maintain a relatively strong RMB value, and the RMB exchange rate will continue to appreciate slightly in the medium and long term.

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In March 28th, the Chinese government awarded the French yuan 80 billion yuan RQFII quota, while continuing to discuss the establishment of RMB clearing and settlement arrangements in Paris. At the same time, the Central Bank of China and the German Central Bank signed a memorandum of understanding to establish RMB clearing arrangements in Frankfurt. In March 31st, the Central Bank of China and the United Kingdom signed a memorandum of understanding on the establishment of RMB clearing arrangements in London.

The main financial centres in Europe are scrambled for renminbi pactions to compete for the position of overseas RMB settlement centers.

This shows that the internationalization of RMB has taken a solid and important step.

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< p > RMB exchange rate reform and internationalization can be regarded as the two important wheels of China's financial reform, and marketization and internationalization are the ultimate destinations of these two wheels.

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