Latest News:  
Beijing   Sunny    1 / -5   City Forecast

People's Daily Online>>China Business

Complex int'l situation weakens RMB vs. dollar

By Wang Yu, Wang Peiwei (

16:19, December 08, 2011

Edited and translated by People's Daily Online

The RMB traded at nearly 6.3651 per dollar on the spot market on Dec. 6, hitting the weakest value at which the central bank will allow it to trade at against dollar for the fifth straight day, according to statistics from the China Foreign Exchange Trading System.

The central bank only permits the RMB to trade at 0.5 percent above or below the dollar-yuan central parity rate, which is set on a daily basis by the China Foreign Exchange Trading System.

It is distinctly different from the continuous appreciation of the RMB a few years ago and deserves special attention.

"The sharp drop in the value of the RMB has been caused by many complex factors, including changes in short-term demand and long-term capital gains, capital outflows, an expected slowdown in China's economic growth and the short-selling of the RMB by certain financial institutions," said Zhang Monan, an associate research fellow at the State Information Center.

Statistics showed that the U.S. Dollar Index is approaching the 80 mark, compared to 74 in the middle of the year. The strong appreciation of the U.S. dollar has led to the drop in the RMB exchange rate against the dollar. In fact, after the 2008 global financial crisis, the U.S. dollar appreciated sharply in the fourth quarter of that year, while the RMB depreciated to its lower limit for several consecutive days.

【1】 【2】

We Recommend


Leave your comment1 comments

  1. Name

wende at 2011-12-0971.251.41.*
PD should give copies of their newspaper to the Capitol Hill to be read (hopefully by the likes of Sen. Schumer). They hold that RMB values are manipulated. This is a clear sign of RMB being determined by the market.

Selections for you

  1. Lantern Art Festival to kick off

  2. Chinese special troops in tactics training

  3. Young Chinese painter holds artwork exhibition

  4. US drone shot down by Iran unveiled on TV

Most Popular


  1. Low pay, tough competition for graduates
  2. Internet piracy down as gov't toughens regulations
  3. China urges more voice from developing countries
  4. China-led strong currency area foreseeable
  5. Can US-Pakistan ties survive current crisis?
  6. Old bear does not dance to Western tunes
  7. China can play critical role in reshaping global order
  8. Falling yuan funds make room for RRR adjustment
  9. Global chaos offers hints of new world order
  10. Playing the anti-China card

What's happening in China

Young Chinese brush painter holds artwork exhibition in Beijing

  1. Beijing raises fuel standards
  2. Man-made rain to secure grain targets
  3. Migrant workers prefer growing roots in cities
  4. Low wages come in the way of finding a mate
  5. Public lecture held to pay tribute to Red Cross

PD Online Data

  1. Yangge in Shaanxi
  2. Gaoqiao in Northern China
  3. The drum dance in Ansai
  4. Shehuo in Baoji City
  5. The dragon dance