The article discusses the trend of the RMB exchange rate and how to grasp it. It begins by explaining the incorrect use of RMB as the English abbreviation for the Chinese currency. It is pointed out that RMB is the Chinese pinyin abbreviation used primarily in China, while CNY is the internationally recognized symbol for the Chinese yuan. The article then highlights the recent volatility in the RMB exchange rate and the caution given by the People's Bank of China regarding the possibility of further fluctuations. It also mentions the 2018 RMB Internationalization Report and concludes by emphasizing the importance of understanding and monitoring the appreciation or depreciation of the RMB exchange rate.
1. The use of RMB as the English abbreviation
The article clarifies that the commonly used abbreviation for the Chinese currency, RMB, is actually the Chinese pinyin abbreviation and is not widely recognized or used internationally. It further explains that the correct English symbol for the Chinese yuan is CNY, which is used for foreign exchange and domestic settlement.
2. Volatility in the RMB exchange rate
The article highlights the recent fluctuations in the RMB exchange rate and the warning issued by the People's Bank of China about the possibility of further two-way fluctuations. It mentions the 2% downward adjustment in the RMB exchange rate made by the central bank, which caused a week of roller-coaster-like movements in the exchange rate.
3. The 2018 RMB Internationalization Report
The article briefly mentions the 2018 RMB Internationalization Report published by the People's Bank of China. Although not providing detailed information about the contents of the report, it suggests that the report is a comprehensive analysis of the internationalization of the Chinese currency and its role in global trade and finance.
4. Understanding the RMB exchange rate
The article reiterates the importance of understanding and monitoring the RMB exchange rate. It emphasizes the need to grasp the appreciation or depreciation of the currency as it directly impacts foreign trade, investment, and overall economic stability. It implies that a thorough understanding of the factors affecting the RMB exchange rate is essential for businesses, investors, and financial institutions.
In conclusion, the article provides useful insights regarding the trend of the RMB exchange rate. It clarifies the incorrect use of RMB as the English abbreviation and emphasizes the use of CNY as the internationally recognized symbol for the Chinese yuan. It discusses the recent volatility in the RMB exchange rate and mentions the caution issued by the People's Bank of China. It also briefly mentions the 2018 RMB Internationalization Report and emphasizes the importance of understanding and monitoring the RMB exchange rate for various stakeholders.