US Treasury Secretary Visits China To Continue Pressure On RMB Exchange Rate

< p > with the US Treasury Secretary Jack Lou (Jack Lew) meeting with relevant Chinese officials in Beijing in May 13th, the RMB exchange rate has become a hot issue again.

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< p > Beijing time May 13th, Jack Lu visited Beijing in accordance with the plan to meet with Chinese leaders.

On the same day, senior US Treasury officials said after the talks that the US side raised concerns about the devaluation of the renminbi and the lack of pparency in exchange rate intervention, and China promised to reform and relax control over interest rates and exchange rates.

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Zhu Guangyao, Vice Minister of finance of China, said on the day that the fluctuation of the RMB exchange rate reflected the demand of the market, and China was determined to push forward the reform of the RMB exchange rate mechanism. P

At the same time, China also pays close attention to the gradual withdrawal of quantitative easing policy.

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Before P, Jack Lu said that China should make efforts to determine the direction of exchange rate by market. This is very important. Besides, China should also ensure that all enterprises compete in a fair environment.

Lu said in the media that he will take this opportunity to urge China to continue to reduce its intervention in the RMB exchange rate and ask China to allow the market to play a bigger role in deciding the RMB exchange rate.

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< p > "in recent months, we have seen some negative signs in the RMB exchange rate."

Lu said that although the Chinese side had relaxed the restrictions on renminbi pactions, the recent devaluation of the renminbi has worried the US side.

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On the morning of P 13, the central parity of the US dollar against the RMB authorized by the China foreign exchange trading center was 6.1636. On the basis of the previous trading day, it continued to rise by 11 basis points, which means that the RMB continued to depreciate.

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< p > in fact, the central parity of RMB has been decreasing for many days.

On Monday and Tuesday, the central parity price of the Yuan went down after a 8 month low on the weekend.

According to the data from the foreign exchange trading center, as at 13, the average exchange rate of the US dollar against the RMB was 6.1553, up 194.76 basis points, indicating that the RMB has been showing a downward trend in the past two months.

In the day trading of April 30th, the exchange rate fell to a low level of 1 US dollars to 6.2676 since October 2012.

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Since the beginning of February this year, the yuan has gone up against the "a href=" http://www.91se91.com/news/index_cj.asp "US dollar < /a >, and the overall upward tone of last year's P has fallen by nearly 3% as a whole.

Last year, the appreciation rate of RMB against the US dollar once reached 3%, so if the downward trend continued to be reversed, the result of last year's appreciation would be smoothed out.

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< p > in view of this, the main purpose of Jack Lou's trip is to put pressure on China to avoid further depreciation of the RMB.

At the same time, because of the obvious downturn in China's economy in the first quarter, the US side is worried that its re industrialization and export problems will be hindered.

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< p > it is interesting to note that the US mainstream think tanks have different opinions about whether the value of "a href=" http://www.91se91.com/news/index_cj.asp "RMB > /a" is undervalued, which makes the US official position in urging the renminbi to avoid further devaluation is not entirely justified.

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Pedersen, a senior research fellow at the PIIE Institute of International Economics (PIIE) of the US think tank, and Arvind Sabramaniya (Arvind Subramanian) said in a research report earlier this month that according to the latest purchasing power parity (PPP) data collected by the world bank from 2011, the renminbi "P is no longer underestimated". (Martin)

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< p > they analyzed that the RMB may have been underestimated by nearly 30% before 2005, but since then the RMB value has changed a lot, and now there is a fair valuation.

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< p > however, many other analysts at the Institute believe that it is too simple to judge whether the RMB is undervalued by using "a href=" http://www.91se91.com/news/index_cj.asp "purchasing power" /a "parity.

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< p > no matter what academic disputes, Jack Lou and American president Obama are under the pressure of domestic public opinion to make sure that the RMB is undervalued.

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The fixed exchange rate of RMB against the US dollar began to change in 2005. In the next 37 months, the appreciation rate of RMB reached 17.3%, reaching 1 yuan and only 6.82 yuan RMB. P

Since then, during the period of Obama administration, from June 2010 to now, in the past 47 months, the appreciation rate of RMB has been 8.8%.

This has led many conservative manufacturers in the us to have considerable doubts about the Obama administration's international bargaining power.

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< p > this laid the keynote of Jack Lou's trip.

In a previous media interview, he stressed that the pace of China's economic reform has slowed down, and he said he would urge China to provide a fair competitive market environment for US businesses.

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