The Two-Way Floating Of RMB Exchange Rate Increased Significantly In 2014.

In March 31st, the State Administration of Foreign Exchange released the China balance of payments report in 2014.

The report said that the global economy continued to continue a slow recovery in 2014, and the economic and monetary policy orientation of various countries was differentiated.

Volatility is increasing.

China's economic operation is in a reasonable range, and the reform and structural adjustment have been steadily advancing, and the two-way floating of RMB exchange rate has increased significantly.

2014, China

It tends to basically balance in oscillation.

The current account surplus of US $219 billion 700 million, an increase of 48% over the previous year and 2.1% to GDP, is still within the internationally recognized reasonable level.

Among them, the surplus in goods trade increased by 32%, and the trade deficit in services increased by 54%.

At the same time, the volatility of cross-border capital flows has increased significantly.

In 2015, China's balance of payments is expected to remain "regular".

The pattern of two-way fluctuation of capital and financial items.

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On Tuesday, the US dollar traded on the 6.2025 line to the renminbi, which means that the RMB exchange rate is expected to increase by 1.07% in March, making it the best currency for the US dollar this month.

Tommy Ong, an economist at DBS bank, points out that maintaining the RMB exchange rate steadily and steadily is the best way to make RMB acquire the status of the global reserve currency.

The latest measures by the Chinese government have eased concerns about the domestic financial market.

Li Keqiang, premier of the State Council of China, pointed out in his March 5th government work report that China will strive to maintain a reasonable and balanced exchange rate of RMB and expand the international use of the renminbi.

In March, the central parity of RMB was raised by 0.09%, ending the two decline in 0.46% consecutive months. During that period, the US dollar index rose 2.3%, which means that the appreciation of RMB against non US currencies is more significant.

Since then, IMF will adjust the composition of SDRs in a basket of currencies in October. If the yuan is to be elected as soon as possible, then the status of China's second largest economy in the world will be further recognized, and the hegemony of the US dollar will be challenged.

However, Bernanke, the former chairman of the Federal Reserve, has also expressed calm about this. He said in his speech on Monday (March 30th) that the RMB will become the international reserve currency, but it is still a long way to go to achieve this goal.

On Sunday (March 29th), Zhou Xiaochuan also said that China will further liberalize its foreign exchange supervision measures during the year.

On Monday, the Central Bank of China has lowered the down payment ratio of two housing purchases to 40%, after Zhou Xiaochuan said that China's economic slowdown has been excessive, so policymakers can then maintain the stability of economic growth through interest rate policy and quantitative easing measures.

According to the survey, the Central Bank of China will reduce the reserve requirement ratio and the interest rate of deposit and loan again in the next few months.

Liu Ligang, chief economist of ANZ bank in Hongkong, said that with the help of appropriate policies, the goal of China's economic growth reaching 7% this year will not be a problem.