What a week to start the year as the Mining GFC rolls upon us. This story comes from iFeng’s finance section, via Investing in Chinese Stocks , where I’ve cleaned up the Google translation.
This year, in only three trading days, the offshore US dollar against the RMB exchange rate to appreciate 2.35 percent, more than two-year RMB deposits of interest. Last August 10 to today, the US dollar against the RMB exchange rate appreciation of 5.6% in the bank, while the same period the Shanghai Composite Index fell 10%. Devaluation trend has been very obvious. Why the RMB will depreciate?
Why do you want to understand the RMB will depreciate, we must first find out why the past ten years, the continued appreciation of the yuan. Over the years, China’s rapid economic development, investment opportunities are everywhere, a lot of foreign capital inflows, pushing up its currency. On the other hand, China has become the world’s factory, rapid export growth, the trade surplus more and more, also pushing up the exchange rate. From 2009 onwards, an important factor in an unknown supported the rise in the RMB exchange rate, currently also the factors that determine the renminbi exchange rate depreciation is a very determined event.
