6.70%!--US dollar RMB exchange rate turbulence

6.70%!
The RMB depreciated by 70% against the US dollar from April 19 to May 16. In the meantime, the onshore RMB exchange rate against the US dollar changed from the highest 6.37 to the lowest 6.8150 in just 16 trading days.

The spot exchange rate of RMB has rebounded sharply against the US dollar for 20 months since the early days of 935, and stopped falling sharply against the US dollar for 17 months. On May 20, the daily trading of RMB against the US dollar closed at 6.6740, with a sharp rise of 938 points, the third largest increase of RMB against the US dollar in this century.

According to the data disclosed by the China foreign exchange trading center, on May 23, the central parity rate of the RMB against the US dollar was reported as 6.6756, an increase of 731 basis points or 1.08% compared with the central parity rate of 6.7487 on the previous trading day, the largest appreciation since July 22, 2005.

On April 19, the onshore RMB exchange rate against the US dollar started a rapid depreciation cycle. On May 13, the onshore RMB exchange rate against the US dollar hit the lowest level since the current round of adjustment, reaching 6.8150. Within 16 trading days, it fell by 6.49%.

At present, the market has different judgments on the trend of RMB. However, most analysts believe that the RMB will still appreciate in the long run. Ding Muqiao, a market researcher of the financial market department of China Merchants Bank, said that the recent epidemic situation in Shanghai has improved significantly, and has gradually entered the stage of resumption of work and production. A number of steady growth measures have been gradually implemented, and the market sentiment is expected to gradually improve. At the same time, the unilateral and rapid depreciation of the RMB will also be curbed, and the RMB exchange rate will still maintain a two-way fluctuation pattern.