Foreign Investors Can No Longer Bet On Renminbi.

"P", the central bank issued a statement on the official website that it will continue to improve the formation mechanism of the RMB exchange rate marketization, further play the role of the market in the formation of the RMB exchange rate, and enhance the two-way floating flexibility of the RMB exchange rate.

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< p > for those foreign investors who have long bet on the RMB exchange rate rising unilaterally, the suspense of RMB a href= "http://www.91se91.com/news/index_c.asp" > exchange rate < /a > begins.

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< p > economic analysts generally welcome the central bank's decision, which means that Beijing is fulfilling its promise to allow market forces to play a bigger role in the economic system.

However, the expansion of the RMB exchange rate has made investors who have already been nervous nervous more cautious.

On the afternoon of 17, the exchange rate of RMB against the US dollar fell.

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< p > this is the third expansion of the exchange rate of RMB against the US dollar since the reform of RMB exchange rate system in July 2005.

Statistics show that the fluctuation rate of RMB expanded from 0.3% to 0.5% in May 21, 2007, and from 0.5% to 1% in April 14, 2012.

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< p > > a href= "http://www.91se91.com/news/index_c.asp" > China's economy < /a > slower growth, < a href= "http://www.91se91.com/news/index_c.asp" > export data < /a > poor, superimposed RMB exchange rate expansion and other factors, so that analysts predict the divergence of the 2014 trend of the people's currency exchange rate.

Over the past few years, China's economic growth has been considerable and trade surplus has accumulated, which has led investors to conclude that the trend of the renminbi is merely a matter of appreciation.

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< p > now, investors are no longer so determined.

Michael Woolfork, a global market strategist at Mellon bank in New York, said: "we are scratching our heads and wondering if this is the beginning of the trend reversal of the government plan."

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Less than P, however, HSBC believes that the recent downward trend in the RMB exchange rate is not sustainable because China's economic growth is still more attractive to investors than other economies. It may break 6 by the end of this year.

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< p > Reuters comments that investors' uncertainty about the trend of the renminbi means the victory of the central bank, because the people's Bank of China has been trying to break the market belief that RMB will appreciate only for many years.

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