Can RMB sustain its currency position in the whole system

Analysts believe that the recent Renminbi against the dollar there is a certain depreciation, reflecting the current in the United States in the economic growth cycle and the status of the monetary policy cycle and the expected level of difference. 

Under the influence of the main market behavior, the exchange rate changes may appear in the stage of overshoot, but the basic trend and economic and financial situation changes are matched, this market supply and demand factors led by the RMB exchange rate fluctuations, in line with the RMB exchange rate pricing mechanism reform direction, Will inevitably appear the phenomenon.

  Short-term view, do not rule out the RMB exchange rate against the dollar in the "7" yuan mark near the competition, but can not put the exchange rate effectively stuck in the "psychological barrier" support. In fact, if excessive inhibition of the RMB devaluation, will only increase the exchange rate pricing distortions, artificially increase the risk hidden dangers. At the same time, it is expected that the regulatory authorities will correct the depreciation rate appropriately and timely to ensure that the RMB exchange rate against the US dollar is orderly and controllable. 

China has a rich foreign reserves and a wealth of intervention policy reserves, coupled with China is still capital control countries, RMB capital projects can not be freely convertible, the depreciation of the yuan against the dollar will not get out of control, the gradual release of devaluation pressure brought systemic risk Controllable. In the long term, as if China's economic phase adjustment, the recent depreciation of RNB against the dollar is only part of the exchange rate to bilateral fluctuations, unilateral depreciation will not last long.