No Depreciation of Renminbi Next Year?

Since three years foreign exchange reform, Renmimbi’s two year appreciation terminated this year. In 2008 under the turmoil of global finance and the difficulties of domestic economy, the tendency of Renminbi exchange rate has undergone many twists and turns. Up to yesterday, the appreciation of Renminbi to US dollar hah reached by 6.86%.

An expert from Chinese Academy of Social Science expresses, accelerated appreciation of Renminbi to US dollar has reflected the success of exchange reform. On one hand, the Central Bank has acknowledged the role exchange rate played in currency system, which would curb domestic inflation to a certain degree; on the other hand, it has reevaluated the impact affecting on exporting by Renminbi exchange rate.

Macro economy analyist under Great Wall Security Company, Limited, He Xiaowei forecasts, in 2009 Renminbin would be depreciated initially and then becoming steady and exchange rate would keep an even level the whole year. Under the higher pressure of appreciation and international trading, it’s impossible for Renminbi to depreciate by a large margin, or if done so, would continue not very long.