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Capital flight two ministries and sounding quite Yuan

Recently, ministries frequently confidence propaganda, the existence of stable RMB exchange rate position, said there is no depreciation of the Renminbi based, we can see that attitude of the Central Government is very firm. The first trading day after the Chinese new year, Renminbi-dollar spot rate rose 1.24%, creating the biggest one-day gain since the 2005 exchange rate reform. However, Monday's gains, currency spot rates against the US dollar on Tuesday fell by 200 basis points, erasing part of the rebound. Yesterday, Yuan central parity against the dollar at 6.5237 6.5130 107 basis point reduction of the previous day, which downgraded its biggest margin since January 7.
market participants believe that the first trading day after the Chinese new year, the RMB exchange rate rose unexpectedly, by the influence of Central Bank Governor Zhou xiaochuan to speak publicly, Zhou xiaochuan, in a media interview stressed that China has abundant foreign exchange reserves to ensure the balance of payments and the stability of the Renminbi, RMB value based does not exist. Zhou xiaochuan also said that will not allow speculative forces dominated the market sentiment.
the recent Central Bank officials on the stand in a row has boosted confidence in the market, market of Central Bank stability and the determination to gradually recognized. Yao Yudong Director of the finance Research Institute of the Central Bank said renminbi could appreciate, and could become an international safe haven currency. Everbright securities Chief Economist Xu GAO said current current smoothing relating to relative changes in exchange rates and inflation fundamentals do not support the RMB devaluation or appreciation of the support.
However, the future development trend of RMB exchange rate is not just propaganda, force will be able to decide monetary policy, credit, and are the key factors influencing the trend of the overall macroeconomic situation.
gold purse Xiaolei, Chief Researcher, to China on RMB exchange rate related to the domestic and international economic Outlook. Overall, since last year, unilateral renminbi appreciation trend is definitely over, probably after bilateral fluctuations or devaluations. First in China and the United States are at different economic cycles. United States in the cycle of interest rate hikes and China's economic growth is slowing, the cycle of interest rate cuts. Xiaolei said, fundamentally, even if our economy has improved related policies will take effect only bilateral fluctuation will be to let the Yuan, say devaluation of the Yuan would have no foundation. Best case scenario, just to maintain bilateral fluctuation.