Against the backdrop of the overall weak economic data in China, the volatility of the foreign exchange market in the short interval has again sparked market concern on the economic downturn in China. In this regard, ANBOUND"s chief researcher, Chen Gong has analyzed the mid-long term trend of RMB exchange rate. In the mid-long term, the USD will fluctuate following the changes in US economy, however, the inflow of international capital will provide support to the USD exchange rate. The RMB exchange rate is significantly higher than the level of economic growth in China, which means in the future, RMB will continue to face the possibility of depreciation. The major policy concern for China’s central bank is to ensure the gradual depreciation of RMB.
