SteelOrbis Shanghai
The RMB/USD rate has shown no signs of halting its advances after breaking through the 7.87 mark. From last Wednesday, the exchange rate continued to break new records since the rate reform, gradually moving closer to 7.86.
Influenced by the speech made by Zhou Xiaochuan, Governor of the People's Bank of
China, in relation to
China's foreign exchange reserves, the USD/EUR rate dropped sharply last Friday, and this directly boosted up the RMB exchange rate.
Nevertheless, since there is still a large gap between the prices of Chinese and international steel products, the RMB appreciation won't be a major factor affecting exports. Rather, it is the export tax rebate adjustment and the anti-dumping measures of other countries against Chinese goods that will really determine the future export situation.