The Current Exchange Rate Trend Of The Renminbi

  Lianfeng motor company has been focus on the RMB rate changes

  Statistics show that as of 10 o'clock on December 8, the onshore RMB spot exchange rate against the US dollar has appreciated by 2.85% this year, and the US dollar index has risen by 6.88% during the same period. It can be said that in the context of the strengthening of the U.S. dollar exchange rate, the RMB exchange rate has bucked the trend and walked out of an independent market.

   As of December 3, the CFETS RMB Exchange Rate Index, which reflects the change in the weighted average exchange rate of the RMB against a basket of currencies, was reported at 102.66, the absolute high since December 2015 and an appreciation of 8.25% from the end of 2020.

On December 7, the General Administration of Customs released the latest foreign trade data for November.

  In US dollars, my country’s total import and export value in the first 11 months of this year was US$5.47 trillion, a year-on-year increase of 31.3% and a year-on-year increase of 31.9%. Among them, exports were US$3.03 trillion, a year-on-year increase of 31.1% and a year-on-year increase of 33.9%. In the first 11 months, China had a trade surplus of US$581.71 billion, a year-on-year increase of 29.8%.

  The total value of my country's imports and exports in November was US$579.34 billion, a year-on-year increase of 26.1%, a month-on-month increase of 12.2%, and a year-on-year increase of 42.8%. Among them, exports were US$325.53 billion, an increase of 22% year-on-year, an increase of 8.4% month-on-month, and an increase of 47% year-on-year.

  The year-on-year growth rate of China's imports and exports in November far exceeded expectations. The external reason was that the Christmas consumption season supported overseas demand and the continued high prices of bulk commodities were superimposed. As domestic measures to ensure supply and price stabilization eased energy restrictions, the production side resumed, boosting the year-on-year growth rate of imports in November to a three-month high.

  On the same day, data released by the People's Bank of China showed that as of the end of November, China's foreign exchange reserves stood at US$3222.4 billion, an increase of US$4.8 billion from the previous month, which was much higher than market expectations.

  Many traders from Chinese and foreign banks told reporters that the RMB is expected to remain at a stable and strong level. Strong exports and supply chains are currently replacing the Sino-US interest rate differential and becoming the key to the dominant exchange rate.

  According to Reuters, the scale of China’s foreign reserves has successfully achieved two consecutive rises. Traders believe that the strong trade surplus is expected to bring a steady stream of demand for foreign exchange settlement, which will counter the impact of the Fed’s accelerated reduction in debt purchases. Strong trend.

The Citibank report also believes that the maintenance of China's international trade surplus will support the strong renminbi.