ABC: RMB appreciation range or exceed 3%

"Financial network," the reporter Huang October 18, the Agricultural Bank (601288.SH/001288.HK) Strategic Management Department of the new report by mail, said, the short-term appreciation of the yuan will be increased, the yuan is expected to rise against the dollar in the year is likely to exceed 3%,　　Since then, the RMB exchange rate flexibility will be significantly enhanced, supplemented by other policy coordination to achieve structural adjustment and inflation prevention purposes. The report argues that the global exchange rate dispute still has more leeway to avoid a currency war.　　In post-crisis times, the currency's determinants shifted from a safe-haven motive to economic fundamentals, an uncertain U.S. economic recovery, a high fiscal deficit and trade deficit, and a likely continuation of QE, with pressure on the dollar to weaken, so the renminbi would still appreciate gradually. Since the beginning of September, the appreciation of the renminbi has accelerated, triggering a series of problems such as hot money inflow, declining surplus and asset price climbing.　　The central bank and the foreign Administration have adopted a series of measures to tighten liquidity, and all sectors and localities have introduced property regulation to curb the housing bubble. But the report argues that China, in fact, also has the incentive to actively appreciate, whether it is a structural or inflation-proof, the need for a stronger renminbi to match.　　However, in the process of appreciation, the regulatory authorities must do a good job in coordinating the relevant policies, including increasing the flexibility of exchange rate, preventing asset price bubbles, expanding domestic demand and adjusting structure, and so on.　　As of October 18, the renminbi exchange rate at the median price of 6.6541 per cent, since June 21 renminbi transfer reset 3.5 months, the RMB cumulative appreciation of up to 2.76%, compared to the January 4, 2010 6.8281 Cumulative appreciation of 2.55%. (Stock market Weekly feeds)