The RMB posted slight depreciation in terms of both real effective exchange rate and nominal exchange rate in April, reflecting RMB appreciation pressure has been eased. Latest statistics released by the Bank for International Settlements (BIS) show that the RMB real effective exchange rate declined 0.92 percent month on month to 130.44 in April, as compared with an increase of 0.95 percent in March.
Meanwhile, the RMB nominal effective exchange rate fell 0.1 percent month on month to 125.94 in April, as compared with an increase of 2.01 percent. BIS' report also showed that the RMB real effective exchange rate appreciated 3.24 percent accumulatively in the first four months, and the nominal rate gained 3.63 percent during this period.
However, the RMB only gained 0.02 percent against the US dollar in the first four months in the spot market, and edged up 0.38 percent against the greenback in terms of central parity rate.
As the RMB adopts a strategy of "moderately pegging" at US dollar, the RMB appreciation pressure eased when the greenback retreated. The US Dollar Index dropped 3.82 percent in April, ending appreciation for nine-month running.
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