Analysis of Global Power Market
Analysis of Macro Economy in China
Analysis of Exchange Rate and Inflation Rate (1/2)
Currency Exchange Rate (Yearly Averages),
US Dollar/RMB, EUR/RMB, GBP/RMB,
2013-2018
10.5
10.13
10.0
9.69.
9.5
9.0
9.53
9.01
8.84
8.71
8.5 8.22
8.16
7.82
8.0
7.64
7.36
7.5-
6.91
7.0
6.76
6.64
6.61
6.5
6.19
6.23
6.14
0.0 F
2013
2014
2015
2016
2017
2018
USD/RMB
EUR/RMB
GBP/RMB
Highlights
➤ From 2013 to 2018, RMB experienced continuous
depreciation against US Dollar, before it appreciated
slightly in 2018. Overall, RMB per US Dollar increased
from 6.19 in 2013 to 6.61 in 2018. In 2015, RMB
appreciated sharply against Euro from 8.16 to 6.91.
From 2015 to 2018, the EUR to RMB exchange rate
maintained upward trend. The depreciation of GBP
decreased the RMB per GBP from 9.69 in 2013 to 8.84
in 2018, suggesting a depreciation trend of GBP against
RMB.
➤ There are increasing worries on the stabilities and future
growth of global economy, especially considering the
rising tensions between China and the United States
relating to the trade disputes since Apr 2018, and RMB
also started to depreciate after the trade war broke out,
even though RMB appreciated slightly throughout the
whole year of 2018.
Going onwards, considering the relatively optimistic
progressive negotiations carried on by the two countries
so far (the just completion of 9th China-US trade
consultation in Apr 2019) and the signaling indications
of U.S. economy's slowing down, it is quite unlikely that
RMB will depreciate significantly against US Dollar in
future, assuming the bilateral negotiation goes well.
Source: IMF, Frost & Sullivan
FROST &
SULLIVAN
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