Yi Gang: The Recent Fluctuation Of RMB Exchange Rate Is Not Big.

　　 Yi Gang When attending the spring annual meeting of the International Monetary Fund (IMF[micro-blog), he said, "the recent trend of RMB exchange rate is the judgement of the market." He suggested that the Federal Reserve began to withdraw from the quantitative easing policy recently. China's trade deficit of nearly 23 billion US dollars in February and the slowdown of economic growth were all factors that the market decided to consider.

RMB versus US dollar Spot rate The cumulative depreciation in the two months exceeded 1.5%. In March, the central bank [micro-blog] announced that the floating rate of RMB to us dollar exchange rate expanded from 1% to 2% in the interbank spot foreign exchange market.

Yi Gang said, "Renminbi." exchange rate Recent volatility is not a big deal. If you observe the degree of volatility of the RMB exchange rate, compared with other emerging market countries, the currency exchange rate fluctuations, or even reserve currency exchange rate fluctuations, are small and normal. From now on, the two-way fluctuation of the RMB exchange rate will be a normal phenomenon. "

Zhou Xiaochuan, President of the people's Bank of China (micro-blog), who is attending the Boao forum for Asia, said this week that the RMB exchange rate formation mechanism is constantly being reformed, and that in the future, the RMB exchange rate will be determined to a greater extent by the market and gradually withdraw from normal foreign exchange intervention.

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"At least 40 central banks have investments in the Renminbi (6.2113, -0.0013, -0.02%) and more central banks are ready to do so," said Jukka Felman, global head of Singapore's central bank and sovereign wealth fund. This makes the currency of mainland China on a path of reserve currency before it can be fully convertible. " Prior to Jukka Felman, the International Monetary Fund provided advisory services to central banks on asset management issues.

One of the reasons why the renminbi is becoming more and more popular among the central bankers is probably the extremely favorable conditions the Chinese government has offered to encourage investment in the renminbi.

Jukka Felman also pointed out that "more and more central banks are adding renminbi to their portfolios." He stressed, "because many central banks already have investments in them, the renminbi is actually a reserve currency in fact. The renminbi has become a de facto reserve currency even before it can be fully convertible. "

He stressed that those banks that may increase the size of Renminbi holdings in the future should be those countries that have close trade ties with China, and those countries whose foreign exchange reserves are relatively large and need to be diversified for returns. Phoenix