China-Singapore Jingwei Client, January 13th. Data from China Foreign Exchange Trading Center on the 13th showed that the central parity of RMB against the US dollar was reported at 6.4605, an increase of 218 basis points.

As of press time, the onshore yuan rose 137 basis points to 6.4533 against the US dollar.

The offshore renminbi fell 49 basis points to 6.4474 against the US dollar.

Screenshot source: China Foreign Exchange Trading Center

  Wang Jinbin, executive deputy secretary of the Party Committee of the School of Economics of Renmin University of China and a researcher at the National Institute of Development and Strategy, recently pointed out that this round of RMB exchange rate appreciation has the nature of an epidemic exchange rate.

Since overseas production capacity has not yet been effectively released, the basic pattern of the strengthening of the RMB exchange rate in the context of the epidemic has not changed.

The high exports in the Chinese economy will continue for several months, and there will be a period of large current account surpluses.

  He also said that the fundamental outlook of China's economic expectations has also boosted the appreciation of the renminbi; in addition, the continuous increase in the supply of US dollars and the spillover of US dollar liquidity will also cause the currencies of other economies to appreciate.

  According to Tu Yonghong, deputy director of the Institute of International Monetary Studies at Renmin University of China, this round of RMB appreciation reflects the market’s confidence in China’s economic development. Micro-entities should seize the opportunity of short-term capital inflows, expand imports, and develop a period corresponding to these short-term capital. Matching trade financing will expand the scale of consumption, production, and trade. At the same time, hedging and risk hedging should be done in the financial market to further consolidate the development of the real economy.

  Will the RMB exchange rate against the US dollar break 6 in 2021?

Zhang Ming, chief economist of Ping An Securities and director of the International Investment Research Office of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said recently that the probability of the RMB exchange rate against the US dollar breaking 6 in 2021 is very small, and it is more likely to move around the range of 6.2-6.6. Fluctuations, the central level is around 6.4.

(Zhongxin Jingwei APP)