Even if the current consumption control of the RMB is only bringing a seemingly contradictory problem to China’s policy makers: the trade surplus and exchange rate increase can determine the purchasing power of the currency, but the excessive increase in value can further compress the export enterprise profits. Reuters on August 31 that after two years of increasing the value of the RMB, the cumulative increase in the US dollar was about 9%, and the recent reached about three and a half years high. At the same time, the more foreign capital flow, the less internal demand, the contrary to the daily intermediate price and market guidance, the Chinese central bank attempted to limit the short-term increase in the value of the RMB. Strong exports, but weak domestic demand still supported the core structure of the RMB from the huge trade surplus. But
After the RMB rose to a three-and-a-half-year high, Beijing actively "stepped on the brake" weak domestic demand restricted value-raising space
The RMB against the US dollar has increased by about 9% over the past two years and reached a three-and-a-half-year high, but the central bank of China is limiting the rate of appreciation through intermediate prices and market guidance.
China Focus Editorial Desk
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