Friday, July 12, 2013

RMB Rate Approch Historic Records

RMB Rate Approch Historic Records
According to the latest data from China Foreign Exchange Center, RMB trading rate to dollar is 6.1599 on July 11 which continiues to rise by 53 base point compared to the last trading day.
This time, the reason why RMB rate remains high is from the speech of Bonanc, the presedent of USA Store Unit. He ponints out at 11th morning that the USA Store Unit will keep the loose stands quite a while. Thus the dollar index fell, RMB trading rate to the dollar approching the records rate 6.1598 on June 17.
Foreign trade is one of the impetus to spur Chinese economic growth. But because of lacking of foreign demand, its contribution to ecnomic growth decline drastically. With the rising the RMB rate, the foregin business will be in deep water.
Zhengwei Lu, the chief ecnomist of Xingye Bank thinks that, the actual effective rate of RMB is ahead of three months, which changed inversely with the profit of Chinese industrial companies. In other words, the overmeasure of the actual effective rate implicates the ecnomic growth. If steps  are not taken to adjust this, the adjustment in other respects will not be significantly improved.