MOFCOM: RMB Exchange Rate Fluctuation Should Not Be Over Interpreted.

In view of the recent depreciation of the RMB exchange rate, Shen Danyang, spokesman of the Ministry of Commerce, pointed out at a regular news conference in March 18th that the recent fluctuation of the RMB exchange rate reflected the role of the market more. It should not be over interpreted. It should be viewed in a more rational way in the context of the RMB exchange rate reform.

1-2 months of this year, China's Balance of trade surplus There has been a sharp decline, while the RMB exchange rate against the US dollar has also depreciated by 0.4%. Some media believe that this is the result of the Chinese government's active regulation, because the depreciation of the renminbi is conducive to foreign trade exports.

In this regard, Shen Danyang said that the recent fluctuations in the RMB exchange rate, more reflects the results of the market, compared with the surrounding and some emerging market countries, the renminbi exchange rate The volatility is still within the normal range. With the deepening of the reform of the RMB exchange rate formation mechanism, the two-way fluctuation of exchange rate will become the norm.

Shen Danyang pointed out that the RMB effective exchange rate compiled by the bank for international settlements can fully reflect the exchange rate movements faced by foreign economic and trade enterprises. In January 2014, the real effective exchange rate of RMB appreciated by 2.03%, which continued to appreciate rather than depreciate.

Regarding this, Societe Generale Bank chief economist Lu political commissar [micro-blog] yesterday accepted the "Securities Daily" reporter interviewed also agreed. Lu said that nominal effective exchange rate can only reflect the operation of trade with the United States. From a basket of currencies, the real effective exchange rate of RMB can fully reflect the exchange rate fluctuations faced by foreign trade enterprises.

Lu commissar pointed out that RMB The more obvious effect of the depreciation of the exchange rate is still reflected in the fight against some hot money, which has little effect on foreign trade export. If the depreciation rate is bigger, the help of foreign trade enterprises will be more obvious. However, the trend of the RMB exchange rate will show a trend of volatility in a certain range this year. Therefore, the future exchange rate can not be expected to fall further.

Shen Danyang said that the appreciation or depreciation of the renminbi has many effects on the foreign trade situation and related enterprises, and there are both advantages and disadvantages. It is very important to maintain relevant policy environment stable and predictable. "As a competent commercial department, we will continue to actively cooperate with relevant departments to further improve the RMB exchange rate formation mechanism, and strive to maintain a basically stable RMB exchange rate at a reasonable and balanced level. At the same time, we should speed up fostering new advantages in international competition, actively expand the use of RMB in the field of foreign trade and economic cooperation, and help enterprises avoid exchange rate risks.

Lu commissar believes that from now on, China's hedge market has not yet developed, therefore, regulators should also guide enterprises to take initiatives to hedge the exchange rate. At the same time, regulators also need to prepare for the future depreciation of the RMB exchange rate.