Yuan's REER rose 4.72% in 2010
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China has accelerated the appreciation of the RMB exchange rate in recent months. |
The renminbi's real effective exchange rate index, an inflation-adjusted indicator that measures a country's international price competitiveness, climbed 4.72 percent in 2010 to 120.53 in December, China Securities Journal reported Monday.
The RMB exchange rate is rising much faster now. Institutions forecast the RMB to appreciate by 4 to 6 percent in 2011. The weak recovery of the global economy, high unemployment rate and the U.S. Quantitative Easing plan will all contribute to RMB's appreciation this year.
From a domestic prospective, China's soaring inflation rate needs a stronger RMB. Also, continuous capital inflow is also adding up to the pressure on yuan's appreciation.
According to the central bank's report, China's outstanding foreign exchange reserves reached US$2.85 trillion by the end of 2010, marking a historic high.
China International Capital Corporation predicted that the RMB REER will rise 5 percent in the next 12 months.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.
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