Three years to the appreciation of the RMB against the U.S. dollar more than 21%

Over the past three years the RMB against the U.S. dollar

More than 21 percent appreciation

July 21, is the RMB exchange rate formation mechanism reform third anniversary. People's Bank of China authorized foreign exchange trading center on the 21st announced that the interbank foreign exchange market exchange rate of RMB against the U.S. dollar price of 1 U.S. dollar against 6.8271 yuan. This basis, over the past three years the appreciation of the RMB against the U.S. dollar rate has exceeded 21 percent.

July 21, 2005, announced the launch of China's RMB exchange rate formation mechanism reform, will no longer be pegged to the U.S. dollar, but reference to a basket of currencies, implement a managed floating exchange rate system.

Throughout the reform, the RMB exchange rate against the U.S. dollar continued to show small gains overall situation, "Youshengyouxiang" features two-way fluctuation was also evident. 2008 has been a notable feature is that the appreciation of the RMB against the U.S. dollar accelerated pace has accumulated nearly seven percent increase, over the last year of the annual increase of 6.90 percent.

At the same time, the flexibility of the RMB exchange rate strengthened, inter-bank spot foreign exchange market in non-US dollar currencies against RMB trading price to expand the floating range of 3 percent. RMB against the U.S. dollar exchange rate volatility from the daily average in 2005 to the end of the year after the expansion of 17 basis points to the current more than 60 basis points.

The past three years, always adhere to China's exchange rate reform initiative, controllability and gradual way, the principle of continuously push in-depth, practical, effective regulation and control the exchange rate reform is expected towards the goal, the exchange rate mechanism in the process of continuous improvement, the risks associated with Have gradually brought under control.

The change, the exchange rate to improve trade imbalances and promote industrial upgrading, and the impact of expanding domestic demand increasingly appear. At the same time, China's export structure has been optimized, textile, footwear and other labor-intensive products and energy products in exports as a share of declining export growth of good mechanical and electrical products.

However, economic restructuring and industrial upgrading process does not necessarily mean that some of the competitive industry gradually decline. In the context of the appreciation of the renminbi, clothing, footwear, and so China's traditional export industries especially the pressure on, there inevitably some business failures, out of the market, and trigger the industry to accelerate integration of the situation.

For such enterprises, simply rely on low prices, the expansion of quantity is not the preferred mode of development strategy, strive to raise the value-added products, improve product quality, enhance brand awareness is a wise move. In China, due to regional development imbalances, which have such industries as industries shift from the eastern region to the central and western regions may be created.

Practice has proved that the majority should be proactive instead of the appreciation of the RMB business to gain greater market share and faster profit growth. Many enterprises through internal tap the potential, financial and other measures to hedge the development and transformation.

People's Bank of China in the first quarter monetary policy implementation report that will continue to be active, controllable and gradual way, the principle of improving the managed floating exchange rate system. Accelerate the transformation of economic development and foreign trade growth mode, more restructuring, further boosting domestic demand in the economy pulling effect, and optimize the import and export commodity structure.