Fudan publishes RMB exchange rate Index scholar thinks not to underestimate RMB

October 22 News, Fudan University Institute of Finance conducted research and development of Fudan's RMB exchange rate index officially issued today, Fudan University Institute of finance Professor Chen Cobing according to the Fudan Yuan exchange rate index in the past 10 years of trend analysis, compared to a basket of currencies, the renminbi nominal effective exchange rate does not exist underestimated, but overvalued. According to the trend of the RMB exchange rate index of Fudan in the past 10 years, from the renminbi pegged to a basket of currencies simulated exchange rate and real exchange rate is visible, as of October 15, 2010, the nominal effective exchange rate index of 112.85, pegged to a basket of currency simulation index of 102.79, higher than the analog index 10%.　　Chen Cobing, a professor at the Institute of Finance and Research at Fudan University, said that this suggests that the renminbi's nominal effective exchange rate is not undervalued, but overvalued, relative to a basket of currencies. He pointed out: "At present, the devaluation of the renminbi only depends on the exchange rate of the renminbi against the dollar, in fact, to see the renminbi and other countries over the relationship, can not simply stare at the dollar exchange rate."　　"He also believes that the recent sharp appreciation of the renminbi against the dollar is not a performance under U.S. pressure, but a corollary to the large depreciation of the dollar against almost all currencies by the introduction of quantitative easing in the US.　　The RMB exchange rate index of Fudan is a trade-weighted comprehensive exchange rate index, and the development of RMB exchange rate index is of great practical and strategic significance in the context of Sino-US trade frictions and pressure from the US to China. The index reflects the comprehensive influence of RMB exchange rate on China's foreign trade competitiveness. It is published daily, thus increasing the timeliness and dynamism of the RMB exchange rate index, which includes not only the trade-weighted nominal effective exchange rate (NEER) and the real effective exchange rate (Reer), but also the renminbi exchange rate index, which is modeled on a basket of currencies. (Xiao from Shanghai)