IMF Or Abandoning The Old Concept That China's RMB Exchange Rate Is Undervalued.

Nowadays, the availability of RMB has been greatly improved, and the political environment of IMF is more favorable to China. It is believed that more than 30 central banks have incorporated Renminbi into their foreign exchange reserve currency; China has also expanded the floating range of RMB transactions and the valuation of onshore renminbi has risen.

IMF Markus Rodlauer, deputy director of the Asia Pacific Bureau, said at a press conference in Washington on Friday that "the renminbi is close to being no longer underestimated. The real effective exchange rate of RMB has a "very significant appreciation".

　　 IMF Chinese policymakers have been urged not to artificially lower the renminbi exchange rate, said last July. RMB Being "moderately undervalued" is about 5%-10%.

According to the bank for International Settlements, the inflation adjusted exchange rate of the renminbi against major trading partners has climbed 12% to a record high in the past year. RMB versus US dollar Over the past 10 years, it has appreciated by 34%, and has appreciated the most in the world's major currencies.

IMF's view is opposite to the US Treasury's semi annual monetary report released last week. The report argues that the yuan is still undervalued. Although China's foreign exchange market intervention has been significantly reduced in the past year, Jacob, the US Treasury Secretary, said on Thursday that the US government will continue to pressure China on the issue of exchange rate.

The International Monetary Fund (IMF) will start using the new special drawing rights (SDR) basket next January 1st. The current SDR basket currencies include the US dollar, euro, Japanese yen and pound sterling.

When the last SDR basket was evaluated in 2010, IMF refused to use the renminbi on its own. The political environment at that time was also bad for China. The amount of RMB trade settlement is very low, and it is one-way, which makes China's huge foreign exchange reserves under greater upward pressure.

Related links:

According to the latest data released by the Bank of International Settlements (BIS), the effective exchange rate index of the RMB rose by 0.96% to 131.66 in March, the tenth consecutive month. At the same time, the RMB effective exchange rate index increased by 2.01% to 126.07 in March. It also rose for tenth consecutive months and hit a record high.

In the same period, the US dollar trend was strong. Data show that in March this year, the US dollar index broke 100 points, hitting a new high of nearly 12 years. However, during the same period, the spot exchange rate of RMB against the US dollar did not rise or fall by 1.13%, and it recovered in the first half.

Since April, the RMB exchange rate against the US dollar has been declining for a long time, thanks to the strong US dollar and the hot trend of Hong Kong stock market. However, in April 15th, the central parity of RMB rose, and as of April 17th, the central parity rate of RMB against the US dollar was 6.1267, up 38 basis points.

This is the third consecutive trading day's rise in the median price and the cumulative increase of 114 basis points on the three trading day, a record two month high since February 9th. Spot exchange rate also rebounded in the near future. As of April 17th, the spot exchange rate of RMB against the US dollar closed at 6.1967, rising for the third consecutive trading day.