China’s RMB Appreciated 3% Nominally Against The Dollar In 2013

The central parity rate for the RMB versus the U.S. dollar reached 6.0969 on December 31, 2013, the last trading day of the year.

The RMB has appreciated around 3% nominally against the U.S. dollar during the year of 2013, according to data released by the Chinese authorities.

The central parity rate for the RMB versus the U.S. dollar averaged 6.31 in 2012.

Since China started to allow its currency to appreciate against a basket of currencies in 2005, the RMB has appreciated around 26% against the U.S. dollar cumulatively.

The RMB’s exchange rate against the U.S. dollar is likely to stay stable in 2014, says Wang Tao, chief China economist at UBS AG. In a report, she remarks that the RMB’s current valuation is close to equilibrium based on the currency’s fundamentals.

But chief economist at the Bank of Communications, Lian Ping, forecasts that the RMB will continue to appreciate against the U.S. dollar slightly in 2014, and it is likely that the exchange rate will fall below 6.0.

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