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People's Daily Online>>China Business

Attack on China's RMB exchange rate unfair: PBOC adviser (2)


10:54, January 28, 2012

Taking into account the higher rate of domestic inflation in China compared with the United States, the yuan has appreciated even more against the U.S. dollar, according to a report submitted by the U.S. Department of Treasury to the U.S. Congress on international economic and exchange rate policies in December.

The RMB has risen against the U.S. dollar on a real, inflation-adjusted basis by nearly 12 percent since June 2010 and nearly 40 percent since China first initiated its currency reform in 2005, said the report.

"Especially during October and November, many Chinese private investors started to spend the Chinese currency buying U.S. dollars, which is an indication that the currency is near an equilibrium level," Li said.

Thanks to a stronger yuan, China's trade surplus has shrunk from about 8 percent of the country's gross domestic product (GDP) before the financial crisis in 2008 to 2.3 percent registered in 2011, according to the PBOC.

Li expected China's trade surplus to further decline in 2012 to 1 percent, mainly due to the stronger Chinese currency, which means the reform of the yuan's exchange rate mechanism has been successful.

"However, people in the international community don't even know the latest figures and their minds are filled with the old figures about China's trade surplus," the central bank adviser said.

【1】 【2】


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Leave your comment8 comments

  1. Name

PD User at 2012-02-02114.244.43.*
China should not bent on US trick to appreciate RMB. US want"s dollar to depreciate so it can make US goods cheaper in the world market and make Chinese goods expensive in the world market.
helen at 2012-01-30203.82.92.*
Some CIA new recruits are trying to impersonate me in the posting. So pathetic and all part of US disinformation exercises!
PD User at 2012-01-3091.86.56.*
To:PD User replied at 2012-01-29 14:09:11 PD User you must be a happy man/woman, it will not take long before we fell dead. So just wait maybe you can try to convince Washington that it is a matter of time, so they do not bother to create all those, well... happy tricks.But I am afraid it gonna take a little bit longer then you think. No problem keep on dreaming, dreams are OK.KamHua
PD User at 2012-01-29113.231.247.*
helen - China is already committing suicide. Your polluted air, water and land is killing you. You just have not fallen down yet
PD User at 2012-01-2974.101.24.*
davo is a jews propaganda-machine for jew/israelis interest.

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