This year, the Renminbi’s exchange rate against the US dollar continues to depreciate, and accompanied by large-scale capital outflows, the controversies on China’s exchange rate formation mechanism and the exchange rate policy have re-emerged. Anbound Think Tank’s special economist Zhong Wei believes that first of all, Renminbi exchange rate’s L-shaped growth is expected. Second, the inherent conflict of multi-goals highlights the dual paradox. Third, the rational allocation of assets outflow has become the mainstream. How should we look at the future options of the Renminbi exchange rate? Zhong Wei suggests that the Renminbi exchange rate’s trend would be largely affected by dollar. In the future, the Renminbi exchange rate formation mechanism will gradually shift to the exchange rate corridor system, and gradually move toward clean floating.
