Chinanews, Beijing, Dec. 13 – Renminbi's appreciation has produced a better impact on Chinese macro economy than originally thought, said Wang Yungui, deputy head of the International Payment Department at the State Administration of Foreign Exchange (SAFE) on Monday. He said that so far, Chinese GDP growth, the fiscal revenues, customs revenue and inflation rate are all more satisfactory than the time before China kicked off the Renminbi exchange rate regime, the China Securities Journal reported.

 

He admitted that the exchange rate regime has produced negative impact on some enterprises. However, this negative impact is being alleviated by these companies. From the rapid growth of foreign trade, it can be seen that Chinese enterprises are capable of sustaining the negative impact brought by the exchange rate regime. To foreign export companies, export refund policy will exert a greater pressure on them than the exchange rate regime will do, he said.

 

He added that the pressure on Chinese export companies mainly resulted from the rising prices of raw materials and the rising labor costs.

 

At the China Foreign Exchange Forum, Wang pointed out that so far, Renminbi’s fluctuating features are more obvious now. While Renminbi’s appreciation against US dollar has increased by almost 6%, its value against other foreign currencies, including Euros, is declining. The fluctuation occurs not only among different currencies but also within a specific foreign currency. Renminbi’s value against US dollar is in a declining trend. “Today, it might appreciate but tomorrow, the value might come down,” he said.

 

He stressed that people should understand Renminbi’s fluctuation feature in a comprehensive way, rather than stick to the US dollar only.